2022 has been a relatively downcast year for the two crypto giants, Bitcoin and Ethereum, with both having shed over 50% of their values in comparison to Q4 of 2021. Opening the year at $46,311.74 and $3,683.05 respectively, 2022 initially seemed poised to be a year of bullishness and potential price discovery exploration, similar to that of the previous year.
However, as a result of the international macroeconomic climate being thrust into jeopardy, the Terra Luna crash, and FTX’s dissolution, amongst various other concerning events, the entire crypto market has taken a substantial hit. With the total market cap once again below one trillion and with a majority of assets having crashed substantially or entirely dissolved, Bitcoin and Ethereum were no exception, closing in 2022 at $16,547.05 and $1,196.88 respectively. Yet with 2023 around the corner, the two can potentially haul themselves up and regain their footing, or potentially slip further.
While it is impossible to accurately predict the future of the crypto market, analysis, metrics, socioeconomic factors, and sentiments can provide an indication of where it could head. Here are some expert opinions and analyses to set 2023 into motion for Bitcoin and Ethereum.
What Will Bitcoin Be Worth In 2023?
With 2022 having been remarkably bearish for the cryptocurrency market leader, Bitcoin, many investors and analysts have flocked to social media to express their bullish expectations for Bitcoin in the coming year. Considering the age-old prophecy that when a market reaches its absolute bottom it can only rebound, many within the space are hypothesizing that the current climate fulfills the former half of this statement and that recovery may be imminent in the coming year.
As alluded to previously, in accordance with general investor sentiment, there appears to be a resurgence in investor confidence, which has the potential to be exacerbated in the new year if technology is enhanced and legal qualms surrounding cryptocurrency are addressed. In terms of bitcoin trading volume, the average daily trading volume of bitcoin is $40.789 billion. And many investors choose to invest and trade in Bitcoin and Ethereum on Gate.io crypto exchange. Not only because Gate.io is one of the top 10 digital currency exchanges in the world, but also because it offers third-party margin to fully protect users’ funds. Furthermore, considering the industry at large has managed to weather the storm caused by the bear market, many are hopeful that liquidity and valuations will improve in the coming year as the market at large pushes against the adversity of the bear market.
On a more bearish short-term note, throughout 2022 investors witnessed Bitcoin’s valuation be directly correlated with the poor performance of the wider financial markets. This has historically proven to be the Achilles heel of crypto, some analysts have proposed that spikes in the Cboe Volatility Index (or VIX) correlated with Bitcoin selloffs. According to Arcane research, the aforementioned paired with the lingering market difficulties of the previous year could have detrimental repercussions on Bitcoin’s short-term price trajectory, particularly considering that the traditional financial markets are still in turmoil.
Similarly, Mobius Capital Partners co-founder, Mark Mobius, told Bloomberg that he expected Bitcoin to fall to around $10,000 per coin, despite his remark that ‘crypto is here to stay’. In light of the decimating FTX crash and rising interest rates, Mobius suggested that Bitcoin may hover around $17,000 for the time being, yet the $10,000 floor is possible providing investor sentiment remains wounded. Additionally, Matthew Sigel, the Head of Digital Assets Research at the investment firm, VanEck, is targeting a similar price for Bitcoin, having predicted that the asset will fall between $10,000 and $12,000 per coin in the first quarter of 2023. Citing the struggling miners as the reason for the decline, due to the ‘unprofitable’ state of the mining industry due to ‘higher electricity prices and lower Bitcoin prices’, Sigel proposed that many miners will ‘restructure or merge’.
However, Sigel’s prediction for Bitcoin’s price trajectory in the coming year bears a more positive undertone, with him stating that as inflation eases, energy prices stabilize, and the Ukraine crisis potentially winds down, Bitcoin prices may resurge to around $30,000 in the third and fourth quarter of 2023.
Despite the overarching bearish sentiment for Bitcoin going into 2023, the likes of Tim Draper have rejected the negativity, instead hypothesizing that Bitcoin may break free from the bear market and soar to $250,000 in the coming year. In spite of industry failures and a neverending crypto winter, Draper stated that the ‘dam is about to break’ and that Bitcoin would reach this target in the final quarter of the year. However, in order for this to be attainable, Bitcoin would need to rally by 1,400%, which appears incongruous with its plunge of over 60% since the start of 2022.
Yet, ultimately, it is crucial to note that due to the constant volatility and uncertain correlation between Bitcoin and other financial markets, it is inherently complex and impossible to accurately predict Bitcoin’s valuation.
What Will Ethereum Be Worth In 2023?
Similar to Bitcoin, Ethereum has been subject to immense volatility this past year and has shed a substantial amount of its volume this past year. However, according to algorithmic data courtesy of Bitnation, analysts believe that this may be the end of the current bear market for Ethereum. Based on a collation of data such as the relative strength index (RSI), moving average convergence divergence (MACD), moving average (MA), average true range (ATR), and Bollinger bonds (BB), Bitnation has predicted that Ethereum will begin to regain its footing and move towards $2,000 in the first quarter of 2023, with the final quarter of the year pushing Ethereum over the $3,000 zone once again. The current trading price of Ethereum is at $1517.31 according to the Gate.io crypto exchange. While this is far from a full price recovery in comparison to last year, Bitnation’s hypothesis could signal that providing external factors minimally impacts Ethereum and that it could follow these trends and begin to recover at a sustainable rate.
On a similar bullish note, popular analyst, Guy of Coin Bureau, recently unveiled his predictions for Ethereum, stating that 2023 could be a “Big Year” for Ethereum in light of the Shanghai upgrade. With the Shanghai upgrading allowing ETH to be unstacked, he stated that the unlocking of billions of dollars worth of ETH may encourage investors to begin staking their assets without the worry of losing their funds, thus incentivizing them to partake in Ethereum’s staking systems. While Guy of Coin Bureau’s predictions is primarily focused on the resurgence of investor sentiment he also remarked that “I don’t think we’re going to see a five-figure ETH in 2023, but I think that’s entirely possible. We could, of course, see a flippening, but I’m not sure. I’m expecting very much kind of sideways price action for ETH over the course of the next year.”
Will Ethereum Go Back Up In 2023?
With many predictions for Ethereum remaining predominantly bullish, it is also critical to consider the flipside and more neutral prediction territory. In a more neutral hypothesis for Ethereum, analyst John Isige has identified that Ethereum is currently finding support from a triangle pattern and that in order to prove itself to investors, it must maintain itself above the immediate resistance at $1,200 and fight against declines to $1,100 and $1,000. Isige also commented that as of this week, Ethereum has reached over 200 million unique addresses in light of the eagerly anticipated Shangai upgrade, serving as a testament to the use case of Ethereum and its importance in the wider market.
Isige believes that if Ethereum breaks free from its current steep uphill battle against the bear market and experiences bullish momentum that it could in fact soar into price discovery zones, with many other analysts predicting $10,000 as the target. In order for Ethereum to reach $10,000, it would require a substantial 700% movement, however, Isige noted that historically Ethereum has accomplished similar movements when in its last bear cycle Ethereum went from $80 to $4,800 – meaning that anything is possible in 2023.
Should I buy Ethereum Now?
With the outlook for Ethereum in 2023 painting an image of bullishness and recovery now may be a good time to buy into Ethereum. Considering the upcoming Shanghai Upgrade, anticipated in March of 2023, and the later Sharding Upgrade, said to be coming in 2024, it is undoubtedly that the development of the Ethereum network will continue to prompt substantial innovation and interest in the network. This has the potential to lead to price strengthening and for Ethereum to establish higher price floors and resistance zones, potentially pushing it out of the $1,000 zone and above and over the $2,000 zone.
However, it is crucial to remember that Ethereum remains a volatile asset and that is difficult to accurately predict its price movements, thus meaning that this information is subject to personal interpretation.