VanEck investment giant thinks Bitcoin price could reach $12,000 with wave of miner bankruptcies

• VanEck, an investment giant, believes Bitcoin miners will go bankrupt despite a slowdown in the Federal Reserve’s liquidity tightening measures.
• This goes against the general outlook for Bitcoin which turned bullish after the US inflation report showed a slowdown in price increases.
• Experts at VanEck have predicted an 82% decline in Bitcoin price from the high of $69,000 to a target of $12,000.

VanEck, a global investment manager, has a bearish view on Bitcoin despite slowing inflation and monetary policy tightening by the US Federal Reserve. Experts at VanEck believe that Bitcoin could go down to the $12,000 level with the latest wave of miner bankruptcies.

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VanEck expects an 82% decline in Bitcoin price from its all-time high

VanEck, an American asset manager and investment giant, is bearish on Bitcoin despite the recent US inflation report. The US Bureau of Labor Statistics released its inflation report on Tuesday, fueling a positive outlook among risk asset owners and crypto traders.

The report showed a decline in inflation and led to expectations that the US central bank will reduce the pace of its liquidity tightening. This should lead to a weaker US dollar and confirm a bullish narrative for Bitcoin and crypto.

Contrary to the conclusion of the US Inflation Report, experts at VanEck claim that the Bitcoin price could witness a massive move. Matthew Sigel, head of digital asset research at VanEck told Coindesk,

Bitcoin will test $10,000-$12,000 in Q1 amid a wave of miner bankruptcies, which will mark the low point of the crypto winter.

Bitcoin miners have been hit by falling profitability and are caught between rising operating costs and the bear market. Since miner profitability is closely tied to Bitcoin prices, VanEck believes a wave of miner bankruptcies could increase selling pressure on BTC.

Bitcoin miner bankruptcies could push BTC prices lower

Bitcoin miners were hit by declining profitability since the beginning of 2022. Miners sell Bitcoin rewards to cover operating costs, and the rising cost of electricity and bleeding BTC prices have weakened their ability to make money.

Miners solve complex mathematical puzzles to verify transactions on the blockchain. Based on data from crypto intelligence platform Glassnode, the total BTC balance held by miners in their wallets has dropped by nearly $444 million or 25,000 Bitcoin since July 2022.

This indicates a growing trend of miners withdrawing their Bitcoin rewards as mining companies face a crisis. VanEck predicted restructuring, mergers and bankruptcies among miners and mining companies in Q4 2022 and Q1 2023. This is expected to increase pressure on the Bitcoin price and BTC could plunge to the $10,000 to $12,000 level.

A decline to $12,000 would mark an 82% drop in Bitcoin price from its all-time high of $69,000.

52kskew, a technical analyst, has an opposite view on the Bitcoin price. The expert argues that BTC could target $18,400 after testing resistance at $17,500.

BTC/USD exchange rate chart

Bitcoin’s first strong break above the 200-day Simple Moving Average (200-day SMA) since October 25 is a bullish indicator for the asset’s price.