A good portion of cryptocurrency investors claim that Bitcoin has reached its price bottom and thus other major currencies such as Ethereum. These speculators - who cling to this view that the collapse of cryptocurrencies is most likely over - are at risk of waking up to a nightmare in a year. 2023.
Arjun Kharbel, an economic analyst at CNBC, wrote a report confirming that another expected drop of Bitcoin by 70% to reach $5,000 next year is among the "surprising" scenarios that may be outside the market's current expectations.
Kharbel stressed that this possible outcome includes a reversal in the course of raising interest rates, as economies struggle, more bankruptcies, and a collapse in investor confidence in digital assets.
He stressed that he did not make predictions, but instead summarized scenarios that are far from the actual current market consensus, and said that demand could shift from bitcoin as a digital version of gold to the real yellow metal, leading to a 30% rise in gold.
The cryptocurrency sector continues to contract. Digital asset exchange Bybit, for example, plans to cut its workforce by 30%, the latest in a series of layoffs to rock the crypto space.
It is clear that the future contains more pain, as about 94% of the participants in the “MLIV Pulse” survey believe that more collapses of platforms operating in this field will follow after the bankruptcy of “FTX” (FTX). .
During the past 24 hours, Bitcoin has enjoyed some stability, as the largest virtual currency rose by 1.8% today, Monday, and traded at its highest level in 3 weeks at $ 17,340, and currencies such as “Ethereum”, “Solana” and “Solana” rose. Polkadot".
On the other hand, during the past few days, the long-term price goals for the largest cryptocurrency in the world by market capitalization ranged from $5,000, which some speculators see, to $1 million by 2030, which Cathy Wood, founder of Arc Investment Management, sees. According to a report published by Coindesk, one of the most famous sites interested in cryptocurrency news in the world.
Crypto speculators often rely on analyzing technical charts to gain insight into future Bitcoin prices.
On the other hand, the percentage of Bitcoin's decline from the record level it reached, which is approximately $ 69,000 in November of last year, is close to 80%.
According to Kharbel, bubbles fully burst when an asset in question drops by between 80 and 90%.
He says that the coin is highly expected to fall to $10,000, as this is the level from which the cryptocurrency kicked off its 2020 bull run.
Despite this - Kharbel believes - there are corresponding risks in the industry, expecting lower prices and a lot of uncertainty in the next three to six months at least.