Bitcoin Price Prediction 2023

This year has proven to be a breakout year for BTC after around 18 months of difficulty. At the time of writing, Bitcoin is up 127% on the price in January, and has touched $38k three times in the last month – a strong end to the year could even see Bitcoin reaching $40,000.

Institutional investors have flocked to BTC as an inflation-proof asset, similar to gold, with Bitcoin spot ETFs one of the main issues in the financial market, and positive sentiment that they should be approved by the SEC in the coming months.

After a strong first two quarters, Bitcoin’s momentum stalled and then suffered a dramatic collapse in mid-August, with the catalyst believed to be SpaceX selling off their BTC holdings. Inflation cooled down while interest rates remained high, encouraging investors to switch from holding BTC to holding treasury bills. Increasing scrutiny of the crypto market by regulators spooked many institutional investors, who have reduced their holdings in digital assets.

However, momentum recovered in October and November and retail interest has since followed institutional investment – at the time of writing, the Bitcoin’s Fear and Greed Index is at 70, indicating a market sentiment of Greed. The Index plummeted as low as the mid-30s in August and September, but that is no longer the case. The Relative Strength Index is also in the Neutral zone.