The year 2022 brought huge losses to all Bitcoin buyers. Since January, the price has fallen more than 66 percent and is currently trading below $17,000. But after this terrible year, what can investors expect from the price of BTC in 2023? Does the current correction present a historic opportunity to buy Bitcoin cheap? Or will the downward trend continue. Kryptoszene.de shows how the current news for Bitcoin may affect the BTC price, analyzes the BTC chart and looks at price forecasts for 2023.
Despite the big sell-off this year, El Salvador doesn’t seem to want to change its commitment to Bitcoin. In 2021, the small country attracted a lot of attention when it made Bitcoin the official national currency alongside the US dollar. But so far this step of courage has not paid off. Quite the opposite. The value of El Salvador’s bitcoin portfolio has now fallen by more than 60 percent, leaving the small state with huge but unrealized losses of an estimated $67 million.
El Salvador teaches Bitcoin to students
Given this development, one might expect the government of El Salvador to lose faith in Bitcoin. But that doesn’t seem to be the case. Therefore, Bitcoin buying continues vigorously. Every day since November 18, another bitcoin is received. The strategy could pay off if the price rises again in 2023. Because of this dollar cost averaging investment strategy, El Salvador lowers its average purchase price. Because before that, the country had bought Bitcoin at much higher prices in 2021.
In addition, El Salvador is taking additional steps to push the mass adoption of Bitcoin. The government sees school education as an important starting point. Students are now taught what Bitcoin actually is, how it works, why it can revolutionize our financial system and how it is used as a means of payment in everyday life.
A video clip goes viral
A video clip, which went viral on Twitter, shows teachers teaching Bitcoin to their students over a period of ten weeks. Specialized topics like how the blockchain works, Bitcoin Halving or the Lightning Network are also on the timetable. “The idea is that this will be replicated in other schools around the world,” says one educator.
This educational program called “My First Bitcoin” is expected to train a total of 10,000 students in 2022. But that is just the beginning. Next year, 250,000 students will be taught Bitcoin.
In addition to the educational initiative, other efforts by the country show how it plans to push through the Bitcoin supercharge. This is how the government is working to build a bitcoin city free of income and property tax. In addition, a separate office for Bitcoin was recently established in the government, in which all projects related to the cryptocurrency are managed. The President’s business meetings on the implementation of Bitcoin are also scheduled to take place here.
— CILLIONAIRE.COM (@cillionaire_com) December 28, 2022
JP Morgen sees no investor interest in Bitcoin
So El Salvador will be a flagship for Bitcoin in 2023. But it is doubtful if that will be enough to drive the Bitcoin price back up. It would be more influential if institutional investors entered the market. The current low prices could provide a good opportunity for this. But there seem to be a lot of constraints here, as JP Morgan investment strategist Jared Gross notes. He says that the interest of such investors in the asset class is “effectively non-existent.”
For his part, this is due to the extreme volatility of Bitcoin and Co. prices. This point and the lack of intrinsic return, as when buying shares, for example, make BTC too predictable and risky as an investment. for institutional investors.
In the bull market of 2020/2021, it seemed that Bitcoin could now take the step to be taken as seriously as stocks and as an asset class. Tesla caused a sensation with its mega investment of 1.5 billion dollars in BTC. The software company MicroStrategy has also invested billions of dollars in Bitcoin.
But now investors have landed hard again. Tesla has resold much of its BTC investment and MicroStrategy has suffered significant losses on its bitcoins.
“Most institutional investors are probably breathing a sigh of relief that they haven’t jumped into this market and probably won’t anytime soon,” JP Morgan’s Jared Gross said during a Bloomberg podcast.
Whether this opinion can be changed will largely depend on whether the price of Bitcoin rises again in 2023 and whether volatility declines in the long term. Only then will institutional investors consider buying Bitcoin in their risk management.
Bitcoin Price: Predictions between $8,400 and $50,000 for 2023
So what to expect from the price of Bitcoin in 2023? Technical chart analysis shows that Bitcoin price is still within a falling wedge. This is a bullish pattern where a breakout to the other side is more likely. However, so far, BTC/USD has failed to break the bearish resistance line, which is currently around $17,000.
If the price of Bitcoin continues to be rejected at this resistance, the price could fall to new lows in the coming weeks. The support line is currently around $12,500. In theory, the course can remain in this chart formation until mid-February before a directional decision is expected. If the breakout is successful, this could put Bitcoin under a technical price target of around $50,000 in 2023.
Digital Coin Price’s price forecast expects the price of Bitcoin to rise to as high as $43,000 in 2023. That, too, would give you a return of more than 150 percent if you bought BTC at the current price.
Financial blog changelly.com’s forecast for 2023 is less bullish. They estimate that the price can be raised to a maximum of $31,500. Meanwhile, Coin Price Forecast only expects prices of $17,300, which speaks of a long consolidation phase in 2023. Wallet Investor’s forecast, on the other hand, is bearish. They expect BTC/USD to see another correction of about 50 percent to just $8,400 in 2023.
There are only 9 days left in the D2T token presale
A potential investment opportunity for 2023 is the purchase of D2T. The token of the new platform Dash 2 Trade, which provides users with chart indicators and important trading signals, is in pre-sale for 9 days only. Then the favorable price ends and the listing on crypto exchanges begins. Here, the price of D2T could rise quickly if investor interest is high.