The FOMO that you begin feeling as the price of Bitcoin begins soaring is unlike any other market. The mood in the crypto market was completely different just a few weeks ago. The doom and gloom were nearly impossible to escape. People declared that the price of Bitcoin would drop to $10k. And then there were even darker predictions where people were claiming that Bitcoin was dead. That it would never be able to recover from everything that happened last year. As easy as it is to get caught up in the FOMO of the Bitcoin market, it is perhaps even easier to get caught up in the FUD.
But then the FED turned slightly dovish and there is excitement again in the Bitcoin market with the implementation of Ordinal NFTs. The mood in the market began to change. But surprisingly; the most bullish factor was also one of the most bearish. During the last two weeks, the SEC has come out in full force in its attack against crypto. Going after staking, stablecoins, and likely much more in the future.
During these types of attacks; we could expect the price of Bitcoin to drastically drop. But it didn’t. Bitcoin’s price did go down slightly, but it appears that the market has run out of sellers. In the days that followed, Bitcoin’s price has continued soaring up to nearly $25 before seeing a slight pullback. With the combination of the market seeming to run out of sellers and the price going up after bad news. These are great signs or confirmations that Bitcoin’s price has reached its bottom. Now it is time for the price to go up.
But just how high can Bitcoin’s price go this year, and can it reach new all-time highs?
As always, please remember that these are my opinions and shouldn’t be taken as financial advice. While I wholeheartedly think Bitcoin will see great price performance in the future. There’s a chance I could be completely wrong.
Why It WON’T Make a New All-Time High This Year
Before we go down the bullish route, let’s remain grounded and talk about why Bitcoin won’t make a new all-time this year.
To put it simply, the world is still hurting economically. People have much less expendable cash to be investing in high-risk assets. We very well could see most financial markets dive, including Bitcoin. Not only is the world hurting, but due to all of the frauds and insolvencies in crypto let year. Its image has been badly damaged. The large money that might have been invested into the market, is now sitting on the sidelines.
Due to all of the crypto self-inflicted wounds, the American government appears ready to finally regulate crypto. Unfortunately for us, it appears that they are after blood. Bitcoin is currently sitting at $25k, a long way from its previous high of $69k. Even if we saw BTC soar greatly this year. It could still fall short of this price level.
Why it WILL Make a New All-Time High This Year
With that said, the price of Bitcoin is nearly $24k after seeing great price movements during the last month. It currently needs less than a 3x in price to make a new all-time high. If things become bullish, it is definitely possible.
The biggest reason is that while people are still hurting for cash. The FED appears to be at the end of the line when it comes to interest rate hikes. This will cause the price to go up throughout the year.
The Bitcoin Ordinal hype phase shouldn’t be overlooked. Arguably, DeFi summer in 2020 helped to ignite the bull run. And perhaps the NFT craze in 2021 caused prices to surge even further. The hype around Ordinals and also the fact that it is bringing excitement back to Bitcoin could have that effect as well. A bull run where people are feeling the FOMO to not only buy Bitcoin but also participate in its ecosystem is something we’ve never seen before. It would be interesting to see how that changes everything.
While it is bearish that the US SEC is going after crypto and stablecoins. They have said that perhaps Bitcoin is the only crypto that isn’t a security. If the SEC were to continue to strongly attack stablecoins and other cryptos, it could cause panic in the market. Where people are searching for safety and therefore put their money into Bitcoin. As crazy as it sounds, there was once a time before stablecoins that Bitcoin was considered the most stable crypto in the market. Crypto owners would trade in and out of Bitcoin for safety. Similar to how traders use stablecoins today. Perhaps this could happen again.
While there could always be a surprise announcement or great macro factor that makes the price of Bitcoin soar. The truth is that there is a sleeping giant event that is waiting on the horizon. The next Bitcoin halving. It takes place next year and odds are that everyone will try to front-run it. There is a good chance that prices could recover and even surpass previous highs before this happens. A Bitcoin halving taking place with the price over $24k makes me very excited about future price potential.
But will it actually happen?
I’m one of the most optimistic and biggest supporters of Bitcoin. It is the project I’m most passionate about and also accumulate the most of. In 2023 I am expecting great things for the price of BTC. However, I’m not expecting new highs. Although, I would love to be wrong on this one.
How about you? Do you think Bitcoin will make a new all-time high this year?
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As always, thank you for reading!