What is the price of Bitcoin (BTC) right now? What is that price going to be by the end of the day or the end of tomorrow? No one knows for sure, and anyone telling you that they know for sure is either lying or delusional. As with all currencies, the price of Bitcoin fluctuates regularly, making it very difficult to make any accurate predictions. Though, with an emerging currency like Bitcoin the problem is far more pronounced. Hence if you want to buy Bitcoin, trade Bitcoin or sell Bitcoin there are always going to be risks. The only real question is if you’re willing to accept those risks to take a shot at earning big returns.
This crypto guide will take a look at the Bitcoin price dilemma. Predictions will be put forward regarding what the BTC price will be in the future. None of the predictions in this crypto guide are guaranteed to be accurate. The object of this crypto guide is to discuss Bitcoin price fluctuations. Not to provide guaranteed predictions on the price of a historically fluctuating digital asset.
Bitcoin is a decentralised digital currency based on blockchain technology. No banks of any kind are involved in Bitcoin, with the entire system functioning on a proof-of-work blockchain model. This is to say that individuals, referred to as miners, that want to be a part of the blockchain can be. All they need to do to participate is commit computer hardware to the purpose. Those that decide to commit their hardware are rewarded with BTC, though are all willing volunteers that were never directly asked to form the Bitcoin blockchain.
Importantly, the BTC that miners are rewarded for their work is a big part of the crypto economy. This rewarded BTC acts as the influx that keeps the economy circulating. However, the BTC that miners earn is halved every 4 years, or after the blockchain has processed 100,000 blocks. The halving system prevents the market from being flooded. As it stands in 2023, Bitcoin dominates the crypto market by an enormous margin. It is estimated that BTC holds around 42.3% of the market, equalling a market cap of around $775 billion. This dominance has subsided slightly due to Ethereum and Cardano. But it’s safe to say that BTC is still head and shoulders above the rest.
There are many reasons that the price of Bitcoin might fluctuate, from the Ukrainian war with Russia to general investor sentiment. It all plays a big part in how digital currencies perform, pushing the price higher or potentially dragging it down. The biggest influence at the moment, however, is that the United States is expected to tighten crypto regulations. The regulations are sure to impact how easy it is to trade Bitcoin, potentially upsetting the market in a big way. Currently, Bitcoin price stands at $30,072. That same price hit a peak of $68,000 in 2021.
Needless to say, that if you had bought Bitcoin at the peak, you would be unhappy about the current value. On the other hand, if you buy Bitcoin at the current price and the value again soars to $68,000, you’ll be making a handsome return on the investment. This is the dilemma and the inherent risk you accept when you get on board to trade Bitcoin.
First and foremost anyone calling themselves an expert in Bitcoin price prediction is probably a little overconfident. There are no experts, given that the cryptocurrency has only been around for a short period. At most those studying the markets can make predictions and hope for the best. The term expert suggests that any of the predictions can be considered accurate, or that the person making the prediction has had more than a handful of years to study the market.
That said, if you’re looking to buy Bitcoin and potentially sell Bitcoin for a profit, you’ll want to know what the sentiments about the market are. Let’s take a look at some of the numbers that are currently being thrown around. Keep in mind that some of those making predictions might have a stake of their own in the market. This is to say, anyone invested in Bitcoin will benefit from keeping public sentiment positive about cryptocurrencies in general. Hence you should never listen to a single opinion, always investigate multiple information sources, and never jump into making any investments.
Digitalcoinprice.com, a site dedicated to tracking the values of cryptocurrencies, gave their prediction about the price of Bitcoin moving forward. Representatives at the site said that they believe the Bitcoin price will rebound back to around $50,000. They didn’t provide more info than this, perhaps feeling it is better to be vague about their feelings. Note that digitalcoinprice.com openly based their predictions on nothing but instinct and gut feeling.
Technewsleader.com, a crypto news site, gave a prediction of its own. The site claims to base all of its predictions on historical data analysis and research, though didn’t give any details on their internal calculations. Technewsleader.com predicts that the value of BTC will peak again at $59,000, but settled on predicting an average of around $54,000.
The dedicated site Crypto Predictions is more cynical about the future of Bitcoin, perhaps taking a more measured approach to make a prediction. The site took the bearish position that the minimum of BTC will rest at around $31,000 and the maximum will peak at $46,000. The site pegged the average BTC value at $37,500 going forward.
Another crypto prediction site, Longest, took the most bearish approach of all. The site predicted that Bitcoin could fall to a minimum of $24,000. They set the Bitcoin price high at $44,713. As it stands, this prediction is the most accurate as of April 2023. At this point, if you want to trade Bitcoin you should be paying careful attention to these predictions. All of the predictions listed here were made last year, yet only one of those predictions is coming close to the truth. If you did decide to buy Bitcoin last year, how would that investment be looking right now? If you wanted to sell Bitcoin that you bought last year, what would the return on investment look like?
It is important that you look at the predictions made by outlets. But it is also important that you learn how to make predictions of your own. Of course, your predictions aren’t necessarily going to be better than those you find online. On the other hand, your predictions may not be any worse either. The important factor is that if you decide to trade Bitcoin you make your own decisions. In that regard, you can always look at another crypto guide on this site if you want more information on other aspects of cryptocurrencies.
As a starting point let’s look at the historical highs and lows of Bitcoin. If taking into account the last few years, BTC has hit an all-time peak of $68,789. It has dropped to lows of $28,000. In making any future predictions you need to take special note of these highs and lows, anticipating that they may occur again in the future. Though, most importantly what resulted in the peaks and highs?
A major blow to cryptocurrency prices came by way of the Chinese government. When the Chinese government made the decision to outright ban cryptocurrencies, overall crypto values fell by as much as 6% in 24 hours. This is an incredibly important occurrence, indicating that volatility is subject to the decisions made by governments. As you are probably already aware, many are expecting the United States government to make decisions on crypto regulations. How will the decision by the United States government impact the Bitcoin price?
Another major impact on BTC came with the eruption of war between Ukraine and Russia. What impact might occur in the future, depending on how the war progresses? What if the war comes to a close? What if a major development changes the nature of the war? How would these occurrences filter down to BTC value?
A factor that many traders aren’t taking into account is the scheduled halving, due in 2024. Halving is a normal part of the BTC lifecycle, ensuring that the market doesn’t flood. But halving is also, historically, a tumultuous time. How will this impact Bitcoin’s value, even if the turmoil is only brief?
Next in our crypto guide is long-term forecasts. Long-term forecasts are, of course, the most speculative when it comes to cryptocurrencies. Consider that it’s often difficult to predict the value of the United States dollar, though the USD has been around for centuries. Bitcoin, on the other hand, has been around for a little over a decade. How could anyone possibly predict the long-term value of an asset that has just a fraction of the historical data of the United States dollar?
With that being said, it seems very unlikely that Bitcoin will ever simply fade away or disappear into obscurity. So the only real question is if BTC value will climb or retreat, based on public sentiment. If the world continues to accept cryptocurrencies value will increase, if public sentiment starts to turn apathetic value will decrease. Taking into account the prediction factors above, some financial advisors suggest that BTC will gradually start to become more widely accepted as an investment opportunity.
We now have a general idea of the factors that impact Bitcoin price. But there are more nuanced factors to consider, especially if you’re trying to make your personal predictions as accurate as possible. Let’s look at some big possible influences that may come into play in a big way. Though just to be clear, we aren’t suggesting that any of these factors are a reason to immediately sell Bitcoin and run for the hills. What we are saying is that these factors may dramatically impact BTC value.
What happens when demand outweighs supply? The value of that commodity increases, of course, pushing the price higher. In 2021, the demand for BTC outweighed the supply, especially given that many major institutions began to invest in cryptocurrencies. Remember that the maximum supply of Bitcoin is pegged at 21 million. The price has balanced out again since the boom of 2021, but also remember that the next halving is due in 2024.
Yes, Bitcoin still rules the cryptocurrency landscape, but will it always? Ethereum is quickly gaining ground, threatening to steal market domination away. Some traders already predict that ETH could become the new dominant crypto, but is this likely? You should be paying special attention to how BTC and ETH are facing off, and if any big market shifts in domination could occur in the future. If a market shift does occur, are you backing the right horse?
If the United States decides to clamp down on cryptos hard, how will the rest of the world respond? The United States often paves the way for the rest of the world, so which other countries might follow suit and also clamp down? Or, which countries might go all in and embrace cryptos? The United Kingdom has a central exchange planned, indicating that the country is more than prepared to lay the groundwork for wider acceptance. To put it bluntly, should you sell Bitcoin you already have if it seems that the United States is preparing to reject Bitcoin outright?
No one ever said that predicting commodity prices is easy. You may be more uncertain than when you started reading, but that is a good sign. Uncertainty is key when it comes to investing in Bitcoin. Just remember that you should never rush to sell Bitcoin off, or trade Bitcoin in general. Yes, time is always of the essence when it comes to trading commodities. But never jump to conclusions, act hastily or follow the herd. Do your own research and make your own predictions.
