Entering 2023, cryptocurrency investors will be watching the price action of Bitcoin (BTC) given how it has battled the bearish trend throughout 2022. In fact, Bitcoin’s performance has been affected by different factors such as macroeconomic factors that drag the asset down through 2022.
Experts evaluate Bitcoin expectations for 2023!
In this line, Finbold asked industry experts about the 2023 Bitcoin outlooks and the fundamentals that are likely to define the asset’s performance.
David Kemmerer, CEO of CoinLedger crypto tax software
Kemmerer, co-founder of crypto tax software CoinLedger, told Finbold that Bitcoin could drop further in 2023, citing the long-lasting effects of events like the FTX exchange crash. However, the executive stated that while determining whether Bitcoin can outperform 2022, it depends on the macroeconomic environment.
“At least in the first half of 2023, BTC could drop lower due to the size of the contagion associated with the collapse of FTX. Skepticism will remain high, driving away potential cash flows from institutional investors. On a larger scale, financial advisors will be reluctant to direct investors’ funds into risky assets, especially in the first half of the year. The price action of the flagship cryptocurrency can go both ways. However, given a favorable macroeconomic environment, BTC prices may stabilize and even increase.”
Elsewhere, he sees adoption, especially by leading financial institutions, as the main key factor driving Bitcoin’s price.
“An important basis that can drive up the price of BTC is adoption. This can be seen even in once-comfortable traditional financial institutions like JPMorgan. “Despite the financial institution’s firm stance on crypto, the firm is softening, putting its clients at risk through BTC trust funds.”
Finally, Kemmerer was skeptical of Bitcoin’s performance against gold in 2023. He noted that the asset has the potential to outperform the precious metal as a hedge against inflation.
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