Scaramucci expects bitcoin to reach $100,000 in two to three years as the market anticipates a bull run.
- In 2022, the cryptocurrency market as a whole lost approximately $1.4 trillion due to liquidity issues, bankruptcies, and the FTX exchange's demise.
- Experts say that while bitcoin is unlikely to retest its all-time high of just under $69,000, it may have reached its bottom, despite receiving a modest boost at the beginning of the year in line with risk assets like stocks.
- Before a possible bull run that could begin in 2024, investors anticipate that 2023 will be a year of caution.
CNBC spoke with insiders in the crypto industry this past week at a conference in St. Moritz, Switzerland, and they predicted that 2023 would be a year of caution. Bitcoin is anticipated to remain volatile, to trade within a range, and to be sensitive to macroeconomic factors like interest rate increases. In 2023, a new bull run is unlikely.
However, experts are optimistic about the coming year and beyond.
In 2022, the cryptocurrency market as a whole lost approximately $1.4 trillion due to liquidity issues, bankruptcies, and the FTX exchange's demise. The industry was affected by the virus.
Experts say that bitcoin is unlikely to retest its all-time high of just under $69,000, but it may have reached its bottom, despite the fact that it received a modest boost at the beginning of the year, in line with risk assets like stocks.
Bill Tai, a seasoned venture capitalist and crypto expert, stated to CNBC last week, "I think there’s a little bit more downside, but I don't think there’s going to be a lot."
"There's a chance that [bitcoin] kind of has bottomed here," he said, adding that the price could drop as low as $12,000 before rising again.
According to CoinShares' chief strategy officer Meltem Demirors, bitcoin is likely to trade rangebound between $15,000 and $20,000 and between $25,000 and $30,000.
She stated that although there was a lot of "forced selling" in 2022 as a result of market collapses, little new money was entering bitcoin.
Demirors stated to CNBC on Friday, "I don't think there's a lot of forced selling remaining, which is optimistic." However, once more, I believe the upside is quite limited due to the lack of new inflows.
Investors are also paying attention to the state of the economy as a whole. Bitcoin has demonstrated a strong correlation with risky assets like stocks, particularly the tech-heavy Nasdaq. The Federal Reserve's interest rate changes and other macroeconomic developments have an impact on these assets. Bitcoin and risk assets were adversely affected by the Fed's aggressive interest rate hike strategy last year in an effort to contain inflation.
According to industry insiders, bitcoin could benefit from a shift in the overall situation.
Experts say that bitcoin is unlikely to retest its all-time high of just under $69,000, but it may have reached its bottom, despite the fact that it received a modest boost at the beginning of the year, in line with risk assets like stocks.
Bill Tai, a seasoned venture capitalist and crypto expert, stated to CNBC last week, "I think there’s a little bit more downside, but I don't think there’s going to be a lot."
"There's a chance that [bitcoin] kind of has bottomed here," he said, adding that the price could drop as low as $12,000 before rising again.
According to CoinShares' chief strategy officer Meltem Demirors, bitcoin is likely to trade rangebound between $15,000 and $20,000 and between $25,000 and $30,000.
"There could be catalysts that we are unaware of; again, the macroeconomic situation and political climate are somewhat uncertain, and I believe that inflation is a new phenomenon. Demirors stated, "We haven't seen that in 30, 40 years."
"So who knows where crypto will fit into that portfolio as people look to make allocations heading into the new year?"
The next bitcoin bull run
During the interviews conducted by CNBC, a number of participants in the industry discussed previous bitcoin cycles, which occur approximately every four years. Bitcoin typically experiences a significant correction after reaching an all-time high. A bad year will follow, followed by a year of moderate recovery.
The "halving" will then occur. When this happens, miners' rewards for mining are cut in half. Miners use specialized machines to effectively validate transactions on the bitcoin networks. As a reward for validating transactions, miners receive bitcoin. Every four years, the supply of bitcoin on the market is effectively slowed down by the halving. There will never be more than 21 million bitcoins in use.
A bull run usually comes before a halving. In 2024, the next halving event will take place.
SkyBridge Capital founder Anthony Scaramucci predicted that bitcoin would trade for $50,000 to $100,000 in two to three years and referred to 2023 as a "recovery year."
You are taking risks, but you also believe in the adoption of bitcoin. Therefore, this could easily be a fifty to one hundred thousand dollar asset over the next two to three years if we get the adoption right, which I believe we will,” Scaramucci stated.
Tai, on the other hand, stated that the beginning of a bull run is "probably a year away" and that the FTX collapse's repercussions may continue to be felt for another six to nine months.
Last week, Bitstamp's global CEO Jean-Baptiste Graftieaux told CNBC that the next bull run could happen in the next two years because institutional investors are becoming more interested.
Demirors, on the other hand, stated that "it will take some time for that confidence to return" and that "the events over 2022 have caused tremendous reputational damage to the industry and to the asset class."
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