Bitcoin Crashes to $10,000 Before Exploding Over 200%, Investment Giant VanEck Says – Here’s the Timeline
The head of digital asset research at global investment behemoth VanEck, Matthew Sigel, predicts wild swings for Bitcoin (BTC) in the coming months.
Starting with a bearish forecast, Sigel says in a post detailing his crypto predictions for 2023 that Bitcoin could fall to between $10,000 and $12,000 in the first quarter of next year.
According to Sigel, Bitcoin miners are currently unprofitable and the resulting bankruptcies will trigger a crash in the flagship cryptoasset’s price.
“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.
The median market cap for the MVIS Global Digital Assets Mining Index is now just $180 million, with nearly all constituents burning cash and trading well below book value.
With Bitcoin mining largely unprofitable given recent higher electricity prices and lower Bitcoin prices, we predict many miners will restructure or merge.”
The MVIS Global Digital Assets Mining Index tracks the performance of firms that generate at least half of their revenue from digital asset mining or activities related to the cryptomining ecosystem.
As for a bullish forecast, VanEck’s head of digital asset research says Bitcoin could rise to $30,000 from next July as lower inflation triggers monetary and fiscal easing.
“Meanwhile, should our recessionary expectations materialize, the Federal Reserve is likely to hold off on interest rate hikes while inflation softens, while money printing and government budget deficits continue.
Only a lack of bad crypto-specific news, under the above scenario, could cause the price of Bitcoin to climb a wall of worry back to $30,000 again.”
At the time of writing, Bitcoin is valued at $16,692, down over 4% on the day.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/NextMarsMedia
