The Bitcoin price is also trading at a low level at the start of the new trading week and has fallen below the $17,000 mark again at the time of publication. This means that the bulls can no longer show any strength and there does not seem to be an uptrend in sight.
Will Bitcoin price end this bear market year well below $20,000? Could there be another solution? Or is there reason to expect a strong outbreak before the turn of the year? Kryptoszene.de looks at the latest Bitcoin news and analyzes what is expected for the course this week.
Billionaire bought BTC for $472
American venture capitalist and billionaire Tim Draper continues to be extremely bullish on the price of Bitcoin. Known for his good business acumen, Draper is one of the early Bitcoin investors. After losing BTC’s fortunes to insolvent crypto exchange Mt. Gox in 2013, he received a sum of 30,000 bitcoins at $472 each in 2014. It is currently worth about 40 times his investment.
Even then, Draper predicted that bitcoin would reach $10,000 by 2017. He was right in his bullish prediction and BTC even rose to almost $20,000 that year.
Bitcoin Forecast: BTC to $250,000 in seven months
But contrary to his assessment, the rapid rise of Bitcoin has not continued at the same pace in recent years and currently BTC is even lower than at the end of 2017. Bitcoin Draper’s forecast that the main currency will rise failed to $250,000 in 2022 as well. .
However, Draper remains extremely bullish and now expects that price to be reached by mid-2023, as he recently reiterated at the Web Summit in Lisbon. However, to reach that price target, bitcoin would need to see an incredible rally over the next seven months, exploding 1,370 percent.
Draper justifies his optimism by saying that paying for things like food, clothing and housing in BTC will soon increase the global importance of Bitcoin. Then there would be no reason to stick to fiat currencies anymore.
Will El Salvador’s “Bitcoin State” become one of the richest countries in the world?
In addition, Draper assumes that those states that are friendly to crypto and invest in BTC themselves could become the richest countries in the world in the next 40 years, as he explained in an interview with investor Anthony Pompliano .
The strategy of El Salvador, a small country in Central America, is particularly impressive to Draper. The country had invested heavily in Bitcoin in 2021 and also made BTC the official currency alongside the dollar. He believes that El Salvador can achieve a rise similar to Singapore and South Korea, which are now economically very strong nations.
Draper also found words of praise for Malta and Switzerland, which would prepare a good ground for Bitcoin with its crypto-friendly economic structures. They would meet people’s desire for financial freedom and new opportunities. Draper believes that Bitcoin, blockchain, smart contracts and decentralized autonomous organizations will create entirely new forms of virtual government in the future.
However, it seems doubtful that Bitcoin will actually see prices of $250,000 as quickly as Draper expects. War, inflation, rising interest rates and other factors continue to weigh on investor sentiment.
The Fed meets again on December 14 and the market is pricing in a high probability (78%) of a smaller 50 bps hike. That would be the 7th rate hike in a row and would bring the Fed Funds Rate up to a new range of 4.25-4.5%.
When was the Fed Funds Rate this high?
December 2007 pic.twitter.com/ut3Y17pt7W
— Charlie Bilello (@charliebilello) December 3, 2022
The Fed meets: How much will interest rates rise?
The last meeting of the US Federal Reserve on 13 and 14 December is therefore eagerly awaited. The central bankers significantly increased the key US interest rate in several steps this year and thus stopped the zero interest rate policy to control inflation. With the first success. Recently, inflation fell below 8 percent to 7.7 percent, which was a positive surprise to analysts’ forecasts. The new inflation figures will be published as early as tomorrow, Tuesday.
Despite the positive trend, the US is still far from the desired goal of returning inflation to 2 percent. So it will be interesting to see if the Fed raises rates again this week. Recently, the rate hikes were 0.75 basis points each. This time, however, analysts are only expecting 0.5 basis points.
2 days that will determine the final price of bitcoin 2022
The next 2 trading days should be very decisive for the Bitcoin course. If the inflation figures are better than expected and the downtrend is confirmed, the price of BTC should rise. For central bankers, this could also be a reason on Wednesday to raise interest rates by just 0.5 basis points.
If the central bankers decide to even raise interest rates by just 0.25 basis points or stop raising interest rates altogether, that would surprise the market and the price could end 2022 even above $20,000.
If, on the other hand, the inflation data is worse than predicted, the central bank will probably have no choice but to stick to its tight interest rate policy, as this would be a sign that the measures taken so far. sufficient to reverse the trend. However, this would be poison for the crypto market and the next correction is likely. Then the risk also increases that BTC will see another annual low in December.
So it’s a decision week for Bitcoin buyers. Is there a consensus annual report that gives hope that prices will rise in 2023 or is the next recession a sign that Bitcoin will continue the bear market next year.
IMPT token leads trading on crypto exchanges
A new cryptocurrency that has attracted a lot of interest from investors in the past few months is called IMPT. Behind the project is a new ecosystem on the Ethereum blockchain, dedicated to the mega-content of climate protection. IMPT is therefore an important area for the financial sector in the future.
IMPT buyers who have acquired the native token in the Phase 1 Presale for $0.018 or in the Phase 2 Presale for $0.023 can trade carbon credits and thus contribute to the carbon footprint. At the same time, there is a possibility of Non-Acceptable Tokens (NFTs) that may gain in value in the next few years.
Listing of the IMPT token on crypto exchanges should begin in a few days. Investors who took advantage of the pre-sale are now looking forward to rising prices and high returns on their investment over the next few years.