The year 2023 has witnessed numerous erroneous predictions regarding the price of Bitcoin (BTC), defying the expectations set by analysts and economists.
It’s crucial to recall that 2022 was marked by negative events, such as the collapse of FTX and the Terra/Luna cryptocurrencies.
These events significantly impacted Bitcoin, causing it to start the year in the red and potentially predisposing many to anticipate a bearish trend in 2023.
In January, Bitcoin was hovering around $16,000. However, as the months unfolded, it gained substantial ground, especially from October onwards, fueled by the enthusiasm surrounding spot Bitcoin exchange-traded funds (ETFs). These financial instruments took center stage in the digital assets scene in 2023 and are poised to maintain their significance in the coming year.
As a result of this, the primary digital currency has experienced an increase of nearly 150% this year, with a notable growth of 52% in the last quarter alone. Various influential voices provided diverse forecasts for Bitcoin in 2023, ranging from catastrophic scenarios to extreme optimism.
Death of Bitcoin
Economist Paul Krugman made one of the most catastrophic predictions, announcing the demise of Bitcoin in 2023. At the beginning of the year, Krugman suggested that the Bitcoin ecosystem, including all cryptocurrencies, was nearing its end.
Krugman also labeled the Bitcoin network as useless, claiming that many institutions began abandoning their projects after the FTX drama, a prediction that has not come true (at least until now, with one week left in the year).
Bitcoin at $5,000
Another unfulfilled negative scenario for Bitcoin was predicted by the multinational bank Standard Chartered. Eric Robertsen, the bank’s global head of research, raised the possibility of Bitcoin reaching $5,000, attributing it to the nervousness surrounding the FTX exchange’s bankruptcy.
The British bank’s position aligned with comments from the European Central Bank (ECB), which asserted that Bitcoin was in its final moments before heading towards irrelevance.
BTC at $50K
In contrast to the negative forecasts, Cheds, the author of “Trading Wisdom: 50 Lessons Every Trader Should Know,” estimated that Bitcoin’s price would reach $50,000 in 2023. Although not precisely on target, Bitcoin is currently trading at just over $43,500.
Analyst Michael van de Poppe also anticipated a $50,000 Bitcoin price by the middle of the year, a prediction that was not fulfilled as BTC had a price of $26,000 at that time.
Tim Draper’s Extreme Optimism
Venture capitalist Tim Draper expressed extreme optimism, predicting Bitcoin to reach $250,000 by early 2023. However, due to the turbulence caused by the FTX crisis, he postponed that prediction, suggesting it would be realized by the middle of the year.
Draper cited a flight towards decentralized, quality currencies like Bitcoin, emphasizing that retailers would contribute to Bitcoin’s price surge by realizing the potential for increased profits through Bitcoin transactions.
Despite these varying predictions for Bitcoin in 2023, the cryptocurrency market’s inherent volatility and unpredictability are evident. While expectations did not always align with reality, Bitcoin’s resilience endures. Some signs even suggest a potential upward trend for 2024, driven by factors such as ETFs, the halving, and the growth of the Ordinals.