Is the traditional banking system in trouble? And, is there a better place to store your wealth? These top-of-mind concerns are prompting strong interest in cryptocurrency, especially the “OG crypto” Bitcoin (BTC-USD). Consequently, some experts’ Bitcoin price predictions suggest powerful upside over the coming months and years.
Just as the U.S. financial sector seemed to be recovering from the Covid-19 crisis, inflation ratcheted up in 2022. Then, the Federal Reserve raised interest rates, and government bond prices cratered. The next thing you know, banks like SVB Financial (NASDAQ:SIVB) subsidiary Silicon Valley Bank and Signature Bank (NASDAQ:SBNY) had major problems.
Fears of bank runs percolated, and suddenly Bitcoin looked like “digital gold”: a relatively safe place to store one’s wealth. Amid this tumultuous backdrop, equities and cryptocurrency experts issued a variety of opinions on the crypto’s future trajectory. So, let’s see what some of them had to say about the “OG crypto” recently.
A Few 2023 Bitcoin Price Predictions Are Bearish
As Bitcoin becomes an unexpected safe-haven asset, one might assume that all Bitcoin price predictions would be ultra-bullish right now. Yet, there are actually a few bearish voices among the crowd.
As you may recall, Mobius Capital Partners founder Mark Mobius forecast a sizable BTC price decline last year. He even predicted that Bitcoin could collapse into the $10,000 range.
That hasn’t happened so far, as BTC is currently heading toward $30,000. Matthew Sigel, head of digital assets research at VanEck, sees Bitcoin falling to the $12,000 level. Interestingly, Sigel cites higher energy prices as a driver of this projected decline in the price.
Even more bearish is Standard Chartered, a global bank that prognosticated that Bitcoin could fall to the $5,000 level this year. It’s certainly possible that restrictive monetary policy from the Federal Reserve could suppress the Bitcoin price somewhat. Still, I find it difficult to believe that BTC will actually decline to $5,000 in 2023.
Experts Lean Bullish With Their Bitcoin Price Predictions
Don’t get the wrong idea here. A handful of bearish Bitcoin price predictions aren’t representative of the majority. After conducting some research, it quickly became evident that inflation and banking sector concerns have made the majority of cryptocurrency experts bullish, not bearish, on BTC.
How high could bank failures and other factors push the price? Paolo Ardoino, chief technology officer (CTO) of Tether, a stablecoin issuer, anticipates that Bitcoin could “retest” its all-time high. In other words, Ardoino expects BTC to approach $69,000.
Similarly, Marshall Beard, chief strategy officer (CSO) of cryptocurrency exchange Gemini, believes that Bitcoin will probably break its “all-time highs this year.” However, Beard further proposed that $100,000 is an “interesting number” for BTC.
Meanwhile, Markus Thielen, head of research and strategy at cryptocurrency platform Matrixport, predicted that Bitcoin would reach $45,000 this year. It won’t necessarily be a smooth ride, though. Thielen acknowledges, “There will likely be a push-and-pull period over the short term.” Moreover, Bitcoin “prices could fall back to $24,000 and test the latest breakout level,” though Thielen describes this possibility as “a worst-case scenario.”
The Reward-to-Risk Profile of BTC Is Favorable Now
So, how high could bank failures and other factors push the price of the “OG crypto” in 2023 and beyond? Only time will tell, and a few experts are bearish on Bitcoin right now.
On the other hand, it’s bullish that Bitcoin is achieving safe haven status during a time of banking sector turmoil. Personally, I find Beard’s $100,000 proposal to be highly ambitious.
Thielen’s $45,000 suggestion looks more reasonable and attainable. So, feel free to take a small position in the crypto today as the banking sector’s pain could be your gain.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.