Several major analyses for the Bitcoin (BTC) and cryptocurrency markets have surfaced in recent reports around the New Year season.
Standard Chartered, a major multinational bank, and a cryptocurrency exchange have offered widely disparate predictions for the coming year, reports have found.
Here are three top predictions from key players in the crypto market.
BTC to Hit $40K by Summer
ShapeShift crypto exchange founder and CEO, Eric Voorhees, said in a recent interview he was optimistic of Bitcoin’s price recovery. He added he would not be shocked if the digital currency reached “like $40K” by the summertime.
He continued that it a 2.5 jump from its current price would be a “great return,” adding a potential bull run could take place in the next six months to three years.
A ten-year timeline for BTC’s recovery would indicate a major failure in the coin’s performance. His analysis cited rising interest rates and stricter regulations as major market disrupters for 2023.
Crypto to Fall to $5,000 in 2023
Conversely, additional media reports warned that BTC could plummet to $5,000 in 2023 due to reported investor underpricing.
Citing a Standard Chartered report, CNBC reported the valuation shift could see Bitcoin prices crash far below its nearly $17,000 price tag.
Eric Robertsen, the bank’s global chief of research, commented in a Sunday note,
“Yields plunge along with technology shares, and while the Bitcoin sell-off decelerates, the damage has been done. More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.”
He concluded that extreme scenarios had a “non-zero probability of occurring in the year ahead, and [may] fall materially outside of the market consensus or our own baseline views.”
Venture Capitalists to Tighten Belts
In a statement cited by crypto media, Outlier Ventures chief executive Jamie Burke said that crypto funding would remain “critical” to the health of the future market.
He added: “[The] strength of the venture market has persisted, with billions of funding still pouring into the space and high levels of capital waiting to be deployed […] we have seen a record number of applications in our most recent cohorts for 2022.”
Concluding, the metaverse and Web3 executive noted ‘undeniable’ changes in the venture landscape. Many fund managers would conserve capital rather than deploy a “spray and pray” investment tactic to avoid risky investments.
