Bitcoin: Bye-bye $500,000 price target
By Marco Oehrl
Investing.com – Bitcoin, Ethereum & Co. has experienced a dry spell for more than a year, as it has been that long since cryptocurrencies traded in the range of their all-time highs.
It was the tightening of Fed monetary policy that caused stocks and crypto to fall in equal measure. However, cryptocurrencies were hit particularly hard, with the terra collapse threatening entire ecosystems back in May. At the time, it was thought things couldn’t get any worse.
But the great savior, Sam Bankman-Fried, who backed troubled projects with sums in the triple-digit millions, made some mistakes even while juggling billions. Failures that caused his own empire to implode and permanently undermined confidence in the crypto industry. His multi-billion dollar ventures also involved some institutional investors who are now having to write off their holdings.
Even Bitcoin advocates such as Galaxy Digital CEO Mike Novogratz have now been forced to scale back their expectations for the future of this market.
Less than six months ago, Novogratz expected bitcoin to reach the magical $500,000 mark within the next five years. Even the terra collapse couldn’t dissuade him from sticking to that price target.
But FTX has changed everything, so as things stand today, he backs off that forecast. He still believes that BTC will reach $500,000, but not in the next five years.
Mobius Capital Partners founder Mark Mobius sees tough times ahead for bitcoin. While reports of a possible bottom are piling up, he believes BTC is likely to test $10,000 in 2023.
That’s because holding cryptocurrencies has become less attractive with the demise of FTX. In times of low central bank interest rates, crypto yield projects that promised returns of 5% or more for holding crypto flourished. However, that ecosystem was predominately based on FTX and now appears to be doomed, Mobius said:
“Of course, there have been a number of offers of 5% or higher interest rates for crypto deposits, but many of those companies offering such rates have gone bankrupt in part as a result of FTX.
So as these losses mount, people become afraid to hold the cryptocurrency to earn interest.”
Bitcoin Technical Price Markers
Bitcoin is currently down -0.77% at a BTC/USD price of $16,953, while the weekly gain is 3.01%.
The cryptocurrency failed to confirm the November 30 rally above the 23.6% Fibo retracements, as yesterday saw a daily close just below $16,986. Thus, the market seems poised for further losses, meaning a test of the November 21 low of $15,504 is to be expected.
Only if there is a sustained rise above the 23.6% Fibo retracements can the 38.2% Fibo retracement at $17,841, 55-day MA at $18,424 and 50% Fibo retracement at $18,533 be targeted.
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