How did the market mispredict Bitcoin’s movement? .. These are the most prominent expectations for 2023

The year 2022 witnessed harsh shifts in the cryptocurrency markets, and it was found that most observers of this market, experts in it, and traders failed to anticipate its movement, as prices collapsed amazingly and the money of many investors in it evaporated, while One of the giant companies operating in it collapsed and declared bankruptcy.

With these data, the task of predicting the price of Bitcoin has become more difficult than ever, and predicting the future of the cryptocurrency market and where it will go during the year 2023 is almost impossible. However, many companies and experts are trying to determine the expected path for the market and the most prominent major currency, “Bitcoin”.

During the year 2022, the Three Arrows Capital fund, a global hedge fund with bullish views on cryptocurrencies, plunged and quickly requested liquidation and filed for bankruptcy due to its exposure to a cryptocurrency that collapsed in the first half of the year.

Then came the collapse of (FTX) last November, which is one of the largest cryptocurrency exchanges in the world, and it is the exchange that was run by billionaire Sam Bankman Fried, whose money quickly evaporated and his wealth melted.

Bitcoin has fallen about 75% since hitting an all-time high of nearly $69,000 in November 2021, and more than $2 trillion has been erased from the value of the entire cryptocurrency market.

A lengthy report published by CNBC, reviewed by Al Arabiya.net, reviewed previous expectations that failed for cryptocurrency prices, as the famous investor in Silicon Valley Tim Draper predicted in 2018, during a technical conference in Amsterdam, that bitcoin would reach To 250 thousand dollars by the end of 2022, and here it is deposited this year at levels below 17 thousand dollars.

When asked about the expected level of $250,000 earlier this month, Draper said $250,000 is “still my number,” but he is extending his forecast by six months, CNBC reported.

Bitcoin would need to rise nearly 1,400% from its current price for Draper’s prediction to come true.

And last April, Anthony Trenchev, CEO of cryptocurrency firm Nexo, said he believed the world’s largest cryptocurrency could be worth more than $100,000 “within 12 months.” Although it still has four months to go, Trenchev concedes that bitcoin is unlikely to rise to that high anytime soon.

Bitcoin “was on a very positive trajectory,” says Trenchev, but “some major forces intervened,” including debt build-up, unsecured or low-quality borrowing and fraudulent activity.

He continued, “I am pleasantly surprised by the stability of cryptocurrency prices, but I don’t think we are out of danger yet and the second and third order effects are still in play.”

On January 12, 2022, Guido Bühler, former CEO of Swiss bank Ciba, which focuses on cryptocurrencies, said his company has an “internal valuation model” of between $50,000 and $75,000 for bitcoin in 2022.

Buehler’s reasoning was that institutional investors would help drive the price up.

At the time, Bitcoin was trading between $42,000 and $45,000, and Bitcoin never reached $50,000 in 2022.

The CEO, who now runs his own investment and advisory firm, said 2022 was a “horrible year,” according to CNBC.

In a research note dated November 9, 2022, JPMorgan analyst Nikolaos Panegirzoglou and his team predicted that the Bitcoin price would drop to $13,000 “in the coming weeks.”

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