Up 70% in 2023, Could Bitcoin Reach $100,000 This Year?

Bitcoin (BTC 1.71%) has traded more like a growth technology stock in recent times, as its price continues to be volatile and moves with the ebb and flow of investor optimism and pessimism. The top digital asset is down 60% from its November 2021 all-time high, like many speculative assets, but things could be turning positive.

Bitcoin is already up 70% so far in 2023 (as of the afternoon of March 22), while the technology-heavy Nasdaq Composite Index is up 12%. Can the world’s most valuable cryptocurrency reach $100,000 this year? Let’s take a closer look at whether this lofty goal is achievable over the next nine months.

Hit the 6 digit

Based on the current price of approximately $27,000, a price target of $100,000 implies a gain of 270% between now and the end of the year. In the grand scheme of things, this type of monster return is not entirely out of the question. In 2020, Bitcoin’s price rose by 309%. And before that, the crypto price shot up by 1300% in 2017, the year then blockchain technology had his coming-out party. However, $100,000 will be a new record for Bitcoin.

There are some notable ones catalysts in the short term that can lift the price to new heights throughout the year. The first development that immediately comes to mind is the collapse of SVB Finance‘s Silicon Valley Bank. This troubling situation highlights how complex, opaque and risky the current banking system is, even after the laundry list of reforms enacted after the Great Recession. It is a real concern that even the Federal Reserve could not see this coming. Bitcoin’s focus on self-sharing and being a bearer asset fully owned by the owner, as well as the fact that it is not controlled by any single authority, illustrate that an economic tool like this is necessary. And this may make more people want to own it.

Some thought that because of the regional banking crisis, the Federal Reserve would hold off on interest rate hikes until the dust settled. But Fed Chair Jay Powell just announced a 25 basis point hike, clearly showing that fighting inflation remains a top priority. We will have to wait and see how the fallout from the banking crisis plays out, but there is a belief that the central bank will have to cut interest rates before the end of the year. A bearish stance is generally a bullish indicator for risky assets, including Bitcoin.

And finally is Bitcoin set to undergo a key event spring 2024 called a “halving”. This reduces the price that miners receive for approving transactions, effectively halving the new supply of Bitcoin entering the market. Throughout history, Bitcoin’s price has moved higher before and after a halving takes place. While past performance is never a true indicator of future results, this bodes well for cryptocurrency price action in the near term.

Adopt a long-term mindset

It would certainly be great for Bitcoin holders to see the price reach six figures by the turn of the year, but whether this will actually happen is anyone’s guess. To be clear, I don’t think anyone has the foresight to predict exactly what will happen to markets or the economy next month, quarter or even year, no matter how convincing a person may sound. There are simply too many variables at play, which means anything can happen.

However, at a high level, the bullish case for owning Bitcoin has not changed. This resource has the potential to continue to be adopted on a larger scale as a legitimate store of value. Consequently, as more money moves from traditional asset classes to Bitcoin, the price is set to rise. It’s that simple. And this will not happen in a year. This task could take decades to play out. But it starts with individuals and institutions learning more about Bitcoin and its value proposition, as well as a clearer regulatory framework in the United States. So don’t hold your breath.

For what it’s worth, I think Bitcoin will hit $100,000 one day. I just have no idea when it is.