bitcoin in 2023
Crypto Trends & News

5 Failed Predictions For Bitcoin in 2023

-Many tried to predict the behavior of Bitcoin, but the digital currency did not listen to them.

The year 2023 has seen multiple erroneous predictions for the price of bitcoin (BTC), defying the expectations of analysts and economists.

It should be remembered that 2022 was marked by negative events such as the collapse of FTX and the Terra/Luna cryptocurrencies, which affected Bitcoin and caused it to start this year in the red. That may have predisposed many to think that 2023 would also be a bear year.

The “Death” of Bitcoin

One of the most catastrophic predictions for Bitcoin in 2023 was made by economist Paul Krugman, who announced the death of the digital currency, which did not come true (at least until now, with one week left in the year).

At the beginning of 2023, the economist indicated that the Bitcoin ecosystem, including all cryptocurrencies, was nearing its end.

Krugman also referred to the Bitcoin network, which he classified as useless. In his opinion, as a result of the drama generated by FTX, many institutions began to abandon their projects after believing that it would help them solve their problems.

However, the economist did not take into account that the FTX case has no direct relationship with the Bitcoin network, but rather that it was a cryptocurrency exchange that had its own FTT token, which was used in risky operations, as reported in its CriptoNoticias moment.

Bitcoin at $5,000

Another of the negative scenarios for Bitcoin that did not come true was the one predicted by the multinational bank of British origin, Standard Chartered.

The bank’s global head of research, Eric Robertsen, raised the possibility that bitcoin would reach a price of $5,000 and there would be an increase in gold since investment in cryptocurrencies would decrease. Robertsen attributed this, at the time, to the nervousness aroused by the bankruptcy of the FTX exchange.

The position of the British bank coincided with comments from the European Central Bank (ECB) in which it assured that bitcoin was in its last moments before this crypto asset “continued the path towards irrelevance.”

Bitcoin Was Going to Lateralize in 2023

Manu Ferrari, the Argentine bitcoin and businessman, projected that the price of bitcoin should reach its downward floor, of $15,000.

At the same time, he doubted seeing an upward movement in 2023 since, in any case, the digital currency would be lateralizing as happened in other cycles and an even lower floor would be seen than in 2022.

The reality is that Bitcoin did not drop below $16,000 this year, and as 2023 progressed, it appreciated until it had a price slightly above $44,000 at the beginning of December.

Despite its bearish vision, Ferrari considered that 2023 would be a good year to accumulate it through the DCA strategy.

Predictions That Were Not Fulfilled, But Could be Fulfilled

Unlike the other negative forecasts, Cheds (author of the book “Trading Wisdom: 50 Lessons Every Trader Should Know”), estimated that the price would reach $50,000 in 2023.

He suggested that this moment was an opportunity to make profits, especially if fluctuations or weaknesses in the market were taken advantage of to accumulate more bitcoin before it reached the price he considered.

Chess wasn’t that far away. Today, December 23, bitcoin is trading at just over $43,000. Will it reach $50,000 in the next 7 days?

Tim Draper’s Extreme Optimism

From a conservative prediction like those of Cheds and Michael van de Poppe, we go to the extreme of optimism for the price of bitcoin, according to investor and venture capitalist Tim Draper.

He said late last year that BTC would reach $250,000 by early 2023. However, due to the turbulence caused by the FTX crisis, he postponed that prediction since he considered it would reach that price in the middle of this year.

“I expect a flight towards decentralized, quality currencies like Bitcoin, and that some of the weaker currencies will become relics,” he commented.

At the time, Draper, who has been one of the pioneers of investing in Bitcoin since 2014, indicated that retail investors would boost the price of Bitcoin. “Retailers will save approximately 2% on every purchase made in bitcoins versus dollars. “Once retailers realize that 2% can double their profits, bitcoin will be ubiquitous.”

The analysis of wrong predictions for Bitcoin in 2023 highlights the volatility and unpredictability inherent in the cryptocurrency market. Although expectations were not met as predicted, either because they were bearish or quite optimistic, bitcoin’s resilience persists, and some signs suggest a possible upward trend for the year 2024, as a result of ETFs, the halving and the growth of the protocol.

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