Bitcoin had a rough year in 2022, its downturn being influenced by significant events in the cryptocurrency market, such as the FTX collapse. Macroeconomic circumstances also played a role in its decline. But now that the crypto winter is finally over, many investors wonder where Bitcoin will be headed in 2023 and beyond.
A look into Bitcoin’s price history
Bitcoin is a digital asset that verifies transactions via blockchain, a technology representing a foundation for several crypto projects with great potential. Its creator, Satoshi Nakamoto, remained anonymous since the famous Bitcoin whitepaper was released in 2008. While Nakamoto was the one to present Bitcoin in detail, another developer took control of the code in 2010. The mysterious creator of the world’s leading cryptocurrency captivates the world even today.
Bitcoin was initially valued on a crypto platform at $0.0008 by considering the cost of mining. Crypto investors’ influx spurred the growth of Bitcoin in the following years, and as a result, the digital asset gained momentum in mid-2017, becoming a leader in the crypto market. In the latter half of 2017, BTC price hit $19,000 – an increase of 2,300%. A bull market followed, causing Bitcoin to lose its value, but the digital currency recovered, reaching an all-time high of $64,700 in 2021. In 2022, its price experienced a downturn, as the collapse of FTX affected investor sentiment, thus leading to liquidations in the crypto market.
Will Bitcoin’s price rise in 2023?
Many altcoins have emerged in recent years, leading many to consider whether they are better than Bitcoin in terms of scalability and speed. For instance, investors prefer Ethereum for its innovative use of the blockchain, and its PoS consensus algorithm, which provides better scalability and is eco-friendly, unlike Bitcoin’s PoW model. Although it may seem like Bitcoin’s technology is outdated, the digital asset still achieves significant success, becoming increasingly adopted as a payment method. Small ventures have embraced it, allowing clients to pay with BTC for services and goods. Bitcoin ATMs have also become popular, enabling users to purchase BTC with physical kiosks. There are now 30,000 Bitcoin ATMs globally, contributing to Bitcoin’s continuous growth.
The increasing adoption of Bitcoin will play a role in its future development, likely resulting in a peak in the digital asset’s price chart. Moreover, according to analysts, Bitcoin and other digital assets may not take the same path as traditional market forces. Bitcoin is considered a hedge against inflation, as it performed incredibly well during challenging economic times.
2022 may not have been the best year for cryptocurrencies, but bear markets don’t last forever. The next Bitcoin Halving, set for 2024, will decrease block rewards, and given the increasing demand for Bitcoin in different industries, there will likely be a new surge in the digital asset’s price – according to estimates, the coin could reach $75,000 this year.
Factors that influence BTC price
Unlike fiat money, Bitcoin isn’t controlled by a central bank, so factors like inflation rates, monetary policy tools and economic growth measurements don’t impact the digital asset’s price. Instead, other aspects do play a role in how well Bitcoin performs, such as:
Regulatory Environment
This is a critical factor that influences the price of Bitcoin. While it’s only a matter of time until a regulatory framework is developed, it’s hard to tell what will be the effects on Bitcoin’s price. However, some crypto specialists believe that regulations may play a role in stabilizing the prices of digital assets, enabling institutional investment, and driving further value.
Adoption
Bitcoin’s adoption rate also plays a role in the performance of the asset. As Bitcoin is increasingly used for investments and transactions, its value will likely increase in the future.
Market Sentiment
Market sentiment has a significant impact on any asset’s price, including Bitcoin. If investors are optimistic, they purchase the asset, resulting in higher prices. But if they are pessimistic, they sell their tokens, leading to a decline in price.
Technological advancements
Last but not least, tech developments matter significantly when it comes to the price of Bitcoin, as they can make the digital currency more appealing, thus increasing its demand and price.
How high can Bitcoin go in the future?
Although past events lead to concerns regarding the future of Bitcoin, the outlook for the digital asset remains favorable, and that has a lot to do with its upcoming developments. For instance, in 2024, the Lightning Network, a second-layer payment protocol, will likely push Bitcoin forward. This is because the Lightning Network allows for cost-effective transactions, accelerating the operation of the blockchain and making Bitcoin payments more appealing due to lower fees. According to forecasts, the BTC price could reach $90,000 in 2024.
More developments will follow in the next few years, such as introducing a Bitcoin Spot ETF – an improvement investors have long been waiting for. While Spot EFTs were previously rejected, it’s only a matter of time before they come to fruition, enabling greater access to Bitcoin investments. In the most favorable scenario, Bitcoin could hit $100,000 by 2025 if it keeps growing at institutional and retail levels. Many reputable crypto exchanges provide Bitcoin as an asset which can be traded, allowing every investor to access it. Investment trends will emerge in the years to come (especially among those not previously exposed to investing), boosting cryptocurrency’s popularity. In the next 10-20 years, Bitcoin could grow exponentially, potentially being valued at $250,000.
Takeaway
Despite past events, BTC will maintain a solid position in the market, attracting investors interested in making a profit. As forecasts show, the digital currency’s price could hit new all-time highs, laying a robust foundation for investors’ success. However, it’s essential to remember that these are only predictions, and no one can guarantee how cryptocurrencies will perform in the long run – that only remains to be seen. Therefore, we advise approaching the market cautiously and making informed decisions when investing. While Bitcoin is the leading crypto, it’s vital to be aware of its volatility and learn the best trading strategies to ensure a positive trading experience.