Bitcoin Price Prediction 2023-2030: Is the BTC Pump Over?
Read Our Detailed Analysis of Bitcoin’s price performance and whether it is a good investment in the next few weeks, months, and years
Bitcoin Price Performance and Short-Term Outlook
Bitcoin Performance in the last 12 months
- 1 Month: +38.3%, Outperformer*
- 6 Months: +1.9%, Parity
- 12 Months: -43.7%, Parity
- RSI: Buy
- Stoch RSI: Oversold
- Moving Averages: Buy
- Overall: Moderate Buy
Bitcoin is predicted to trade between $23,18509 and $23,679 today. Bitcoin’s short-term momentum is Negative
Bitcoin Price Prediction this week is in the range of $22,296 and $23,787
With more than 38% pump over the last month and little good news ahead, the BTC Pump could be over for now.
What are experts saying in the last 48 hours?
Opinions are currently divided about the direction of the Bitcoin Price
- Some traders believe that the current consolidation of Bitcoin looks similar to the price action from late 2020, just after it surpassed its old all-time high from 2017, and that it could go higher in the near future.
- Other traders are concerned about the possibility of a change in the US dollar’s fortunes, which could affect risk assets.
- Rekt Capital believes that Bitcoin could dip before continuing higher.
- Willy Woo, a respected on-chain Bitcoin analyst, has observed a new pattern of stablecoins flowing into exchanges during work hours only, which he believes suggests the return of Institutions in the market
- The CIO of Bitwise Investments, Matt Hougan, recommends Bitcoin and Ethereum as the two major crypto assets that investors should have in their portfolios, with Cosmos as an interesting alternative crypto asset.
Read on for our Latest Bitcoin Price Predictions
Is Bitcoin a Good Investment?
Bitcoin is a blockchain-based cryptocurrency designed to act as both a currency and also a store of value. It was released in 2009 by an anonymous developer, Satoshi Nakamoto.
- Bitcoin was initially released as a peer-to-peer payment method and does not have any central authority.
- It uses the concept of proof of work to reward its members. The lifespan of Bitcoin (BTC) has been the longest of any cryptocurrency.
- The Bitcoin ledger is public and any person can store it on their computer. Anyone can create a Bitcoin token and can be transferred to any of the wallets however, the owners of bitcoin addresses cannot be identified, but any Bitcoin transaction made can be accessed by anyone, anywhere.
- No approval is required for the completion of a Bitcoin transaction. It is done by the network itself without the interference of any third-party system.
- It is a limited resource of 21 Million Coins of which 19.1 Million are in supply.
- Since its creation, Bitcoin has held the top rank in terms of market capitalization.
Bitcoin Use Cases
There are 2 major use cases for Bitcoin at the moment. This is different from use cases for Blockchain which is much more widespread.
- Store of Value: In Layman’s language, Bitcoin is like Gold hidden inside a computer network instead of a mine in Africa. The creator(s) deliberately created a limited number of them and created a whole range of difficult tasks to get them. Just like in real gold mining, Bitcoin mining becomes difficult if more people mine at the same time or as the number of BTCs keeps reducing. That said, It cannot be used as ornaments, one of the big factors that drive Gold value. To solve this problem, the creators designed it in the form of a currency that is authenticated via a blockchain.
- Payments: Over the last few years, BTC has increasingly been used as an alternative to the US Dollar or other National Currencies. It is now accepted on payment by many companies around the world. While BTC enjoys the absence of central control and therefore any form of voluntary devaluation, it suffers from more volatility.
What are the Latest Payment Statistics?
According to Coingate
- Nearly a Million Crypto payments were made in 2022. This is related to Coingate related Merchants only and not the entire market
- These payments have grown by 63% over 2021
- Bitcoin accounted for 48% of the payments, USDT was second with 15%, and ETH (11%) vs marginally ahead of LTC (10%)
- Lightning Network which facilitates BTC payments grew by 97%
According to Bitpay
- Nearly half a million payment transactions were completed in the last 6 months
- VPN Hosting and Internet make up for 33% of Crypto Payments (Bitpay data only)
- 29% are toward Gift cards
- 24% are towards Computer games
- 42% of the payments are made using Bitcoin, 26% through LTC, Ethereum is at 11%, Doge is at 10% (Bitpay data only)
So there is firm evidence that Bitcoin and Crypto payments are rising at a massive pace and are likely to do so sans aggressive regulation.
Why is Bitcoin not used in DeFi and NFTs?
Bitcoin is a major player in payments but is not present in DeFi and NFTs. The primary reason is the transaction speed. Because of the lower transaction speeds, other blockchains like Solana, Polygon, etc are better for DeFi than Bitcoin.
The same logic applies to NFTs as well. High Transaction costs, low processing times, and the weaker smart contract abilities of Bitcoin do not make it an ideal blockchain for NFTs
Is Bitcoin better than Gold?
Bitcoin is better than Gold for the following reasons
- It is more durable
- It is more safely portable
- It is quite liquid
- It is Divisible
Gold is better than Bitcoin for the following reasons
- It has a long history of value
- Gold has a wide range of real-life uses and fewer alternatives – Jewellery, Manufacturing
- Gold is ‘relatively’ less impacted by Federal Reserve policies
Bitcoin Price Performance History
Bitcoin has been a highly volatile cryptocurrency since its launch. After being launched at $0.0008, it piqued the interest of early adopters but things really changed after Global liquidity rose in 2016 and 2017, more speculators entered the market and pushed the price higher to $19.8k. However, as the Federal Reserve tightened its balance sheet, Bitcoin price crashed and fell to a 2018 bottom of $3k by December of that year. However, prices gradually rose first because of the Federal Reserve easing on its plans to reduce the size of its balance sheet and pumped after the COVID-induced interest rate cuts in 2020 reaching an all-time high of $69k in November 2021.
After inflation breached 6% in October 2021 and Russia invaded Ukraine in February 2022, prices crashed. This was further compounded by the crash of Luna and FTX. Bitcoin fell to nearly $15k in November 2022 before recovering by 30% by this week.
Bitcoin’s Return on Investment over the last 12 years
Overall, Bitcoin has delivered positive returns for most of the last 10 years.
- Bitcoin has delivered positive returns in 9 out of 12 years
- 2018 was the most difficult year which also coincides with the year the Federal Reserve reduced the size of its balance sheet. During that year, Bitcoin closed 74% lower than the previous year. It took Bitcoin 3 years to recover.
- Unlike Alts or even Ethereum, Bitcoin has been there for a fairly long time and with a record of proven performance.
Gain Years: 2011,2012,2013,2015,2016,2017,2019,2020,2021
Loss Years: 2014,2018,2022
Bitcoin vs Ethereum, Performance Comparison
- Last 3 Months: 16.3%, Outperformer*
- Last 1 Year: BTC (-)37.0%, Outperformer
- Last 5 Years: BTC +187.1%, Outperformer
On a long-term basis, Bitcoin has performed more consistently than Ethereum. However, over the last few months, Ethereum has outperformed Bitcoin.
Some people compare Bitcoin to the Tulip Mania, while others relate it to the Dot Com Bust. However, both the Tulip Mania and the Dot Com bubble lasted around three years. Bitcoin has been repeatedly tested in this contemporary era of computers and boom and bust cycles over the previous 12-15 years. So, the comparison is false, and Bitcoin will rebound.
Will Bitcoin recover and go back up?
Bitcoin has had a horrible time between November 2021 and the whole of 2022. Bitcoin fell after US Inflation rose above 6% and it fell further after LUNA and FTX scams.
So when will Bitcoin Recover?
Let us first learn from 2017-2018.
The Federal Reserve squeezed the size of its balance sheet during this period. This squeeze began in January 2018 and ended in August 2019. A total of 20 months. During this period, this is how Bitcoin performed.
- Price on January 1st, 2018: $14,110k
- Price on August 31st, 2019: $9,598
- The highest Price during this period: was $17,462
- Lowest Price during this period: $3,244 [December 2018]
The lowest point was 77% lower than the entry level. So what made Bitcoin move higher from this lowest point in December 2018? One simple reason is unemployment began to move higher from December 2018 (Reported in January 2019). However, unemployment remained at subdued levels all the way to Feb 2020. Bitcoin was priced at $9,290 on Feb 1st, 2020.
Bitcoin price is heavily dependent on liquidity and this is a facet of any speculative asset. Therefore, all future price forecasts will depend on how liquidity plays out during the next few months and years.
False Pumps in 2018
On Feb 6th, BTC was priced at $7,050, it rose all the way to $11,500 by March 6th, a 63% pump. It then fell all the way to $6.8k by April 2018 and $3.2k by December 2018.
When will Bitcoin go back up?
Bitcoin appears to have begun a recovery though given the False pumps of 2018, it is not to be assumed that it won’t fall back again. The global economy will continue to slow down in the next two quarters. However, a China and US-driven recovery could push the global economies higher later this year. But the challenge is that any recovery that is swift will push inflation higher again which in turn could lead to more rate hikes. So it is a tricky situation at the moment.
We may have firm visibility over the next 3-4 weeks. That said, as a long-term investor (3 to 5 years) Bitcoin is still a good buy. There could be some volatility but over a 5-year period, Bitcoin could deliver tremendous returns.
Major Risks for Bitcoin Recovery
There are numerous risks that could derail a quick recovery
- The cryptocurrency industry is going through turmoil via increased legal scrutiny as well as insider scams and failures over the last few months. Increased regulation and more failures/scams could also hurt Bitcoin significantly.
- While the Global Economy ‘appears’ to be moving toward recovery, it is not guaranteed. Things could get worse this year taking Bitcoin to levels below $10k
- It is one more year and Bitcoin use cases haven’t skyrocketed. No doubt that supply is limited and prices have increased over the last 10 years, but the use cases haven’t risen at the same pace.
Bitcoin Prediction: How many BTC Holders are in Profit?
Holders in Profit: 62%
Holders in Loss: 36%
Will Bitcoin reach $100000 in 2023? What are experts saying?
To reach $100,000 in 2023, Bitcoin will have to rise 5 times this year. This is unlikely to occur for the following reasons – Liquidity will not revert to 2021 levels for another few years. Historic data (as illustrated earlier) has proven that it takes 2-3 years for Bitcoin to reach previous highs after a major crash.
Will Bitcoin reach $100000 ever?
The answer is YES. Bitcoin will reach $100000 sometime in the next 3-4 years or later as the cryptocurrency market recovers from the lows of 2022.
What are other experts saying?
Summary: Apart from the highly optimistic forecasts, the consensus period appears to be 2024-25.
Analysts who spoke with Time Magazine have zeroed onto 2025 as the year when BTC will reach $100k
Interviews with Cryptonomist predict $100000 by 2024-25 (October 2022)
Bitcoinist reported predictions of $100k by 2024 (December 2022)
Analysts interviewed by Kitco predict $100k by 2023 (Predicted on October 2022)
Some aggressive forecasts include NEXO CEO forecasting $100k by May this year. (Predicted on April 2022)
Analysts interviewed by CoinTelegraph predict $100k by 2023 (Predicted on October 2022)
Allianz’s El-Arian predicts that Bitcoin will never reach $100k
Bitcoin Price Prediction 2023, 2025 and 2030
Coin Specific Issues
- Bitcoin continues to struggle in acceptance with numerous credible experts calling it a fraud/ Ponzi scheme
- While Bitcoin acceptance for payments and money transfers has risen, it is still quite paltry given the large regulatory hassles and risks
- The Ukraine crisis continues
- Global liquidity continues to fall
- A Series of scandals this year beginning from Luna and continuing with FTX has further hurt the overall crypto market
- Forecasting is rarely accurate because of too many influencing variables which cannot be predicted given human intervention
- Forecasting is good at picking the direction but not the magnitude
Still, here is a broad outline of how things playout
- 2023-2024: BTC Bottom plus some recovery
- 2025-2027: Full BTC recovery plus some gains on the back of wider usage of Blockchains
- 2028-2031: Cyclical slowdown plus, Widespread blockchain usage, a further rise in Bitcoin price
This does not take into account wars or company-specific crises which are likely to occur but the timing of which is difficult to predict. Bitcoin Price Prediction 2023 is $41,360
Bitcoin Price Prediction 2025
The supply of Bitcoins being mined will fall by half in the next 14 months. With reduced supply, the volatility is likely to diminish. Bitcoin momentum is likely to sustain in 2025 as economies recover. However, regulations are likely to increase as well. Bitcoin Price Prediction 2025 is $73,873
Bitcoin Price Prediction 2030
However, we expect a substantial bump between 2025 and 2030 when many middle-income countries are likely to invest substantial pools in the Bitcoin economy. Bitcoin Price Prediction 2030 is $320,344
Bitcoin Price Prediction 2040 using 15% and 25% ROI Method
- If the BTC price increases by 15% per annum – $237,138
- If BTC price increases by 25% per annum – $1,063,705
Bitcoin Halving and its impact on Price
Risks of Minting
One of the biggest and less discussed risks of Cryptocurrencies is the minting of new tokens. In theory, printing millions of new coins could have a deflationary effect on the price of cryptocurrencies. When new tokens are launched, investors often lay down a detailed plan of how many tokens have been released, how many have been held back, and how many more will be minted. If founders keep printing unlimited numbers of Tokens, the price of the Token is highly likely to crash and reduce in value. Often, too many tokens are released at the very outset, and on realizing the same, communities and administrators decide to institute burn programs to reduce the tokens in circulation and drive up the price (for example: Luna classic and Shiba Inu)
The creators of Bitcoin understood this risk early and created a well-defined process called halving. This is a code built into the Bitcoin protocol that reduces the rate at which new bitcoins are created. In a fixed cycle (210k blocks, 4 years), the reward that miners receive for verifying stocks is cut by half. Halving events occurred in 2012, 2016, and 2020 and will again occur in 2024. Numerous influencers propose that such events influence Bitcoin price but it is unclear by how much. Often such halving events occur along with numerous other factors and therefore it is difficult to correlate Bitcoin price movements to halving events.
Learnings from Shiba Inu and Luna Classic burn
What we learned from Shiba Inu and Luna Classic burn events is that Burn tends to have a limited impact on price. For example, new use cases, partnerships, etc tend to have a more sustained impact on price than managing the supply of tokens. One reason for the limited impact is that the number of tokens burnt tends to be small (for example 0.5% in 4 months for Luna Classic).
BTC Price USD Prediction: Frequently Asked Questions
How high will Bitcoin reach?
At the moment, aggregated forecasts predict Bitcoin will rise above $500k by 2030. Many experts believe Bitcoin could go as high as $1 Million over the next few years. Given the limited number of coins, these forecasts are not improbable. A good indicator of the possibility of a high Bitcoin price is the adoption of Blockchain. Once that becomes mainstream, $1 Million is not an impossibility.
Will Bitcoin reach $1 Million?
Without ruling out the possibility of $1 million, we believe it is too early to make such a forecast. Bitcoin is likely to reach $1 million if some fundamental aspects are in place – Largescale adoption of Blockchain, Bitcoin maintaining its lead over nimble competitors like Ethereum, and continued growth in the Global economy for people to invest in Bitcoin. At the moment, we don’t have full clarity on the direction of these factors over the next 8 years.
What will Bitcoin be worth in the year 2025?
Bitcoin is likely to be worth $68,245 in 2025. This is 3-4 times the current price. The precision level for this forecast is moderate. We anticipate some form of Global recovery in 2023 and 2024 should significantly boost BTC prices in 2025.
How Much Will Bitcoin be Worth in 2030?
Bitcoin lost most of its value in 2022 and almost all the Bitcoin Future Price estimations have fallen flat. Therefore, it would be quite difficult to predict how much will Bitcoin be worth in 2030. Using the current price, here are the Bitcoin Future price (2030) estimations:
- If BTC gains 25% annually, Bitcoin will be valued at $1,06,233 in 2030.
- If BTC gains 30% annually, Bitcoin will be valued at $1,45,388 in 2030.
- If BTC gains 50% annually, Bitcoin will be valued at $4,56,784 in 2030.
Will Bitcoin crash again?
Past data analysis suggests that Bitcoin could crash again this year or next year but it is impossible to provide a firm timing at the moment. The reason is that the crashes are related to a sequence of events and we have no data on when those events are likely to occur (for example, a big crash in the European economy, a Sudden surge in Liquidity leading to Bitcoin becoming overpriced)
What factors affect the Future price of Bitcoin?
- Bitcoin Adoption
- Inclusion in mainstream ETFs
- Supply of BTC from Miners (Lower)
- Cost of producing a Bitcoin
- BTC Domination (Higher)
- Cryptocurrency related news
Crypto news from around the world has affected the price of Bitcoin widely. Any good news about cryptos like their adoption, or increased interest of the investors has led to a surge in the price of Bitcoin. At the same time any news regarding the ban of crypto in any country, and regulation against cryptocurrencies have led to a Bitcoin price crash.
- Geopolitical events
Non-crypto news has also played a very important role in the price movement of Bitcoin. In early this year, Russia attacked Ukraine, this event turned out to be a Waterloo for Cryptocurrencies. Along with it recently US Fed hiked the interest rate, and this hike in interest rate led to the crash of the crypto market. Bitcoin price tumbled after the rate hike.
Bitcoin Price Forecast News
- As per the latest updates, the wallet of Satoshi is doing 20,000 LN payments per day.
- Moreover, they are on pace for 600K payments in the month of January.
- The billionaire venture capitalist and crypto enthusiast Tim Draper are confident that Bitcoin will reach $250,000 in 2023.
- One of the Bitcoin core developers Luke Dashjr posted that many of his Bitcoins were stolen and he had no idea how it happened.
Risks of Investing in Bitcoin
If the stock market is seen as volatile by many, Bitcoin is hyper volatile and its price swings wildly akin to a meme stock. Unlike the prices of stocks which have some form of scientific basis, the underlying value of Bitcoin is still unclear, and therefore the price swings wildly depending on a variety of factors. There are huge risks in investing in Bitcoin and one should be aware of that if one has already invested or is about to invest in Bitcoin or similar cryptocurrencies
Stress and Anxiety
The huge volatility due to Bitcoin price causes investors to often take irrational decisions to buy or sell leads to poor returns. As outlined earlier, investing in Bitcoin in general has been profitable. However, responding to the volatility due to the stress and anxiety of seeing the prices swing wildly often leads to sub-optimal returns. This becomes particularly true if a substantial amount of personal wealth is locked in the asset. Investment advisors often consider your ability to handle this form of volatility along with your financial plans for the next few years before recommending Bitcoin.
Bitcoin threatens the existing Central Banks and as a consequence the Government control of printing and managing currency in the economy. It is unclear how serious this threat is at the moment but most central bankers believe this threat is real. Governments have already responded by either imposing full bans, imposing high taxes, or even launching their own tokens in response to the real or imagined threat of Bitcoin. These create additional risks that one does not encounter in stock trading. It is unlikely that many Western countries would impose such bans but it is also important to be aware of these risks.
Investing in Bitcoin must be a part of the healthy financial planning process that should include current wealth, expected income, and future expenses. It should also be overlaid by your mental makeup and response to volatility. A financial advisor would be a good guide to help you take these decisions.
Bitcoin Forecast: How to Invest in Bitcoins?
Getting Bitcoins has been made easier by the day. There are multiple exchanges offering Bitcoin and other cryptocurrencies.
The very first step to investing in Bitcoin is to choose an Exchange. There are multiple exchanges in the market. The most popular ones are:
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.