Last year was difficult for the crypto market, but Bitcoin has bounced back from the price lows it experienced. Investors are even preparing for a new Bitcoin all-time high. The cryptocurrency is enjoying a strong rally in 2023. Bitcoin prices rose from $16,600 in December 2022 to over $28,000 in March 2023.
Financial crises like the FTX exchange and Signature Bank collapses, have wounded some cryptocurrencies and stocks. Bitcoin, on the other hand, is only growing stronger. Some say Bitcoin may even surpass the $66,790 price tag it earned in 2021 soon. We’ll explore why experts are so bullish on Bitcoin, and how you can prepare for a new all-time high.
Several experts predict that 2023 is the year Bitcoin will reach a new all-time high price. Bitcoin experienced a lot of volatility in the past two years - in November of 2021, its price tag was over USD 66,000. In 2022, the cryptocurrency suffered a -34.72% overall price drop, reaching its lowest price yet.
Cryptocurrency suffered due to geopolitical and economic instability in 2022. It also faces opposition from governments across the world.
Despite this, insiders and crypto experts have positive sentiments about the future of Bitcoin.
The resilient digital currency has numerous benefits that give users more value than other assets. Its decentralized and anonymous nature allows for
Chief strategy officer Marshall Beard at popular crypto exchange Gemini thinks Bitcoin will soar. When talking about Bitcoin market trends, Beard said, ‘’I think Bitcoin probably breaks all-time highs this year’’. The CTO of crypto stablecoin Tether, Paolo Ardoino, agrees with this sentiment. In an interview with CNBC in March, he said
‘’I’m bullish on Bitcoin, I think that it can easily retest the all-time high levels - around 60k’’.
Even experts who are less sure of the crypto breaking through a new all-time high price are certain it will perform well. Rand Neuner, the founder of CNBC’s Crypto Banter and CEO of Onchain Capital, is one of them. ‘’Between now and the end of the year, I see Bitcoin going above $50,000’’.
Many worried that the recent banking crisis would severely impact Bitcoin. Instead, Bitcoin has surpassed all expectations and rallied, rising 70% in recent weeks. This is the first time the cryptocurrency topped $28,000 in the past nine months. The 2023 banking crisis is ongoing, following the collapse of Silicon Valley Bank in March - making it the second-largest bank failure in U.S. history.
Suggested reading: YouHodler’s Thoughts on the Banking Crisis
Citizens’ confidence in U.S. banks plummeted, and capital flowed into Bitcoin instead. Cryptocurrency operates as a more secure alternative to protecting money. Governments or malicious parties are also unable to tamper with it.
Crypto insiders pointed out this is Bitcoin’s purpose as a decentralised digital currency, and new investors are discovering its appeal. This is great news for the future of Bitcoin’s reputation - proving that users can count on it even during a crisis.
Crypto enthusiasts and experts alike are giving Bitcoin a bullish prediction due to several signs. Other than its exceptional performance this year, the crypto is showing signs of rising further. The gaining price has paused slightly since March’s huge uptrend. Still, a hidden MACD (Moving Average Convergence Divergence) price divergence suggests a long-term bullish market.
The MACD is a trend-following momentum indicator, which reveals the momentum and strength of crypto.
Another bullish sign is Bitcoin’s dominance levels, which are now at 47%. This is the highest Bitcoin’s dominance has been since June 2022, and it’s still rising. Even as other coins fall, such as Litecoin and Cardano, Bitcoin gets stronger.
Experts think that Bitcoin’s upcoming halving event in 2024 is also contributing to its bullish trend. The last halving occurred in 2020, with three halvings total since Bitcoin’s inception. There has always been a parabolic uptrend in price post-halving.
Insiders agree that 2023 is the year for Bitcoin, and the year’s first few months have proved so. Bitcoin is already on the rise from its lows last year in every way. Bitcoin’s price, market sentiments, and market cap are more desirable now and still rising. Time will only tell how far Bitcoin’s bullish price increase will go. Long-term investors are convinced it will perform stronger than last year, and market sentiments are growing more positive.
Bitcoin’s potential as a store of value and as a tradable digital asset is undeniable. The crypto rally after this year’s banking crisis is a great signal of things to come. However, Bitcoin’s low liquidity raises concerns for some. It makes the crypto more prone to volatility. If large amounts of Bitcoin are traded at once, its value is affected.
Due to this, traders should take risk management measures to invest in crypto safely. Keep a diversified portfolio to hedge your investments against inflation and reduce volatility. Traders can also use stop-loss and take-profit orders to keep their assets safe remotely.
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