Analysts expect Bitcoin to be highly volatile this year. However, they also do not rule out a steady rise similar to the one that took place in early 2023. At that time, Bitcoin added 60%, recouping half of its losses by the end of 2022.
Bitcoin is unlikely to reach all-time highs this year due to inflation, which is declining very slowly.
Charmyn Ho, the head of crypto insights at digital asset exchange Bybit, believes that BTC will hardly approach a new record high as the global economy is unstable. The main risk is the likelihood of a recession in the United States, Europe, and other major economies. BTC trajectory will also depend on inflation.
Another crucial driver is halving. It means that the reward for mining Bitcoin transactions is cut in half. As a rule, BTC advances following this event. The next halving is likely to occur in April 2024. So, the amount of Bitcoin awarded to miners will be reduced by half. Against this backdrop, BTC could grow significantly if demand remains high.
Jagdeep Sidhu, the lead developer and President of Syscoin Foundation, assumes that the upcoming halving may change the crypto market. Earlier, the analyst drew attention to the stability of the crypto ecosystem. "While we've weathered some storms recently, the resilience of the crypto ecosystem remains evident. From the ashes of FTX, the market has rebounded, demonstrating its inherent capacity to absorb shocks and evolve. As we approach the next Bitcoin halving and crypto dominance looks set to peak, we're on the cusp of exciting developments in the crypto world," he stressed.
Mr. Sidhu reckons that rising inflation is the main downside factor for BTC. If inflation in the United States decreases and the regulation of digital assets becomes more transparent, Bitcoin could hit a high of $38,000 by the end of 2023.
Tim Shan, the COO at decentralized crypto exchange Dexalot, supposes that in the near future, BTC will remain in the range of $25,000- $32,000. However, by the end of 2023, if inflation remains high, Bitcoin may return to previous lows. David Ugrinyak, the director of ecosystem development at TRON, is confident that Bitcoin will end the year near $35,000.
Currently, market participants are assessing the prospects by carefully watching which trajectory BTC will eventually choose. They are also analyzing the trends of the crypto market. Speculators believe that in the fourth quarter of 2023, the prospects of the crypto market will become clearer.
