In the first half of 2023, Bitcoin experienced a remarkable surge, crossing the $30,000 threshold for the first time in several months. This surge followed a tumultuous 2022, during which the world’s largest cryptocurrency plummeted by over 60%, triggered by various industry downturns, including those affecting Terra, Celsius, and FTX.
However, 2023 presented a different landscape so far. Bitcoin’s prices have seen an upward trend, and major institutions, like the US wealth management giant BlackRock, have taken significant steps in the crypto space. Notably, BlackRock applied for a Bitcoin ETF spot. On the regulatory front, several actions have been taken against prominent players in the crypto industry, such as securities lawsuits targeting Binance and Coinbase, leading to considerable uncertainty.
The rapid rise of Bitcoin caught many traders off guard and marked the return of volatility for the digital asset. With Bitcoin’s price surging by over 80% in the first half of 2023, Investors asked crypto market observers about their expectations for the cryptocurrency’s performance in the second half of the year.
Based on Glassnode data, the world’s leading digital currency was last traded at $30,217.83. Five market experts shared their insights, with three of them expecting Bitcoin to reach $50,000 by the end of 2023.
Experts Predict Bitcoin Price Surge to $50,000
One of the experts, Carol Alexander, a finance professor at Sussex University, highlighted the cryptocurrency’s surge to $30,000 earlier in 2023. She attributed this surge to significant buy orders from large holders known as “whales” and renewed interest from institutional investors. According to her, these factors could drive Bitcoin’s price as high as $50,000, potentially even reaching $70,000, by the year’s end. However, she cautioned that regulatory developments, particularly with the SEC’s control over exchanges like Binance and Deribit, could impact the price, potentially leading to a value below $50,000.
These price predictions were confirmed by the British bank Standard Chartered.
Geoff Kendrick, the head of digital asset research at Standard Chartered, expressed optimism about Bitcoin’s potential rally to the $50,000 mark. He pointed to indicators suggesting a slowdown in sales by miners, who are companies utilizing specialized computer equipment to validate blockchain transactions. Kendrick stated that in the first quarter of 2023, the 12 largest publicly traded miners, accounting for 20% of global BTC mining, sold 106% of the mined BTC (with stockpiles causing the figure to exceed 100%). However, he estimated that in the second quarter, this figure was slightly below 100%.
As the BTC price is expected to rise to around $50,000 by the end of 2023, Kendrick anticipates that the share of newly promoted sales should decrease to 20-30%, resulting in a net sales drop of 250,000 BTC per year, a significant number in comparison to the bitcoin market turnover. He believed this driver would add $10,000 to the price of bitcoin and now considers that estimate to be accurate. He also stated they see potential upside to their target of approximately $100,000 by the end of 2024.
Bitcoin’s Future Price, Regulatory Challenges, and ETF Approval
Antoni Trenchev, the CEO of crypto lending company Nexo, shared a more moderate perspective, stating that he wouldn’t be surprised if Bitcoin’s value lies between $40,000 and $50,000 by the end of 2023.
Two other respondents were hedge fund manager Mark Mobius of Mobius Capital Partners and venture capitalist Tim Draper of Draper Associates, although their predictions were not specified in the given text.
According to Mobius, he anticipates Bitcoin to experience a surge, reaching $40,000 by the end of 2023, citing the strong “belief” of investors in the digital coin. On the other hand, Draper did not provide specific information, but he reiterated his expectation that Bitcoin will surpass $250,000 by the end of 2024, which aligns with his previous prediction of reaching this level by mid-2022.
Another critical matter closely monitored in the cryptocurrency world is the potential approval of a Bitcoin ETF. BlackRock was the first to submit its application for the iShares Bitcoin Trust in June, followed by Fidelity two weeks later. Other entities, including WisdomTree, VanEck, and Invesco, have also taken steps toward launching their own funds. Despite these efforts, the US Securities and Exchange Commission has not yet approved any Bitcoin ETFs, and many experts do not expect such approval to occur in 2023.
