This week starts with a hangover for bitcoin after prices suddenly fell before the weekend. The price still manages to stay above the USD 22,300 mark. In this article, we want to make a BTC price forecast. Also, we will touch on some factors that could be interesting for the crypto market this week.
Bitcoin price unstable
Over the past week, the price of the leading cryptocurrency has fallen several times. However, after several corrections, it climbed above the USD 24,000 level several times. However, now it seems that the price wants to move between the section USD 22,300 and USD 22,500.
Today the price is at $23,408 after gaining two more percentage points in the last 24 hours. The market capitalization is currently around USD 400 billion. The price of Bitcoin seems to be on an unclear path. So the question is, will it bottom out first or will it continue to rise in the coming weeks?
Bitcoin: Still dependent on some economic data
Some financial experts assume that Bitcoin is an independent currency whose price development does not depend on the classical financial market. But last year proved otherwise. The economic difficulties caused by the war in Ukraine, among other things, caused the entire crypto market to fall at times.
As soon as the FED announced a major interest rate increase, investor support collapsed and Bitcoin and Co sold off in large numbers. In the past, prices have reacted very quickly to inflation data published in the US.
— Crypto Rover (@rovercrc) March 6, 2023
It wasn’t just that investors seemed to be more cautious in general. At the same time, it was noted that small investors also had to withdraw from the market. There was too much concern about another slump, which could lead to losses.
For the time being, the economy appears to be recovering from past difficulties. Both the main interest rate and inflation show a much more stable picture than in the summer of 2022. Although both values rose slightly, there was no clear upward curve.
That is why most of the cryptocurrencies have risen since the beginning of the year. Bitcoin started this year at a value of around $16,500.
Important dates cause Bitcoin to crash
Over the past week there have been several important developments for the crypto and stock market. Among other things, the S&P 500 stock index recorded a strong daily average loss. However, the stock indices remained stable on a weekly basis.
Over the past week, several key events have led Bitcoin’s price back south. The US durable goods report and the US CB consumer confidence release both follow and new Purchasing Managers’ Index (ISM) numbers failed to help the price. However, the data on US purchasing managers’ indexes were particularly responsible for the latest losses. The disappointing results sent the entire market into the red.
Not surprisingly, this data has proven to be relevant to Bitcoin in the past. They indicate, among other things, the purchasing power and willingness of retailers to buy. For example, if the value of durable goods fell, the US dollar would likely fall as well. It would then be very likely that Bitcoin would fall again as well.
The value of the Purchasing Managers’ Index tends to move in line with the US dollar. If this price comes out lower than expected, the pressure on the stock and crypto markets could increase. Because these are considered very risky. So now traders are mainly pushing to sell the Bitcoin.
BTC price forecast: That’s what an expert doubts
Opinions about bitcoin differ greatly. Some experts assume that it will find a sustainable place in our lives, others see it as just a gimmick.
There are always multiple predictions for the coin. Because it is on the initial course and usually shows the way for the other cryptocurrencies. Last week, fund manager Jesse Myers offered what he described as “exaggerated” expectations for BTC prices.
In his blog he describes that Bitcoin could increase by a factor of 500 in principle. That’s around 10 million USD. He assumes that the increasing scarcity and increasing demand would make Bitcoin “digital gold”.
Of this he writes:
“So the value stored in bitcoin will only increase over time thanks to the increasing scarcity of bitcoin, investors have to deal with the (positive and negative) volatility until then.”
However, he concludes in a few words that the prospect of USD 10 million for bitcoin is obviously “extreme”. However, he would like to emphasize the value of the coin with his analysis.
It is currently difficult to predict how much Bitcoin will rise or fall in the future. A renewed stabilization to around USD 23,000 would be desirable. If economic conditions continue to stabilize in the coming months, the price may rise again to an all-time high. This situation would probably only develop very slowly.
However, if such stabilization were to occur, other, new projects would also be able to benefit from it. Among other things, MEMAG’s trade could be further driven.
MEMAG: Meta Masters Guild
The MEMAG token presale ended a few weeks ago. Now the beginning of the trade is about to happen. The developers could look forward to high demand during the presale. If the market develops positively in the coming weeks, the first trading day could be a complete success. With Meta Masters Guild, an ecosystem around crypto games and fun to earn should be created in the future. The developers want to create a completely new gaming experience where users should even earn money. The platform is still under construction, but the first game is expected to be released this summer.
Cryptocurrency with potential 2023
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