VanEck - BTC to $10K in Q1 but $30K in Q3
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An editor at Coincrop
04 Jan 2023 | 3 min read
s the energy crisis approaches, VanEck predicts that Bitcoin prices could fluctuate between $10,000 and $12,000 during Q1 of this year due to miner bankruptcies.
According to VanEck's Head of Digital Assets Research Matthew Sigel, Bitcoin (BTC) will likely reach a low point between $10,000 and $12,000 in the opening months of 2021 - marking the bottom of this bear market.
According to Sigel's company statement, the MVIS® Global Digital Assets Mining Index has a median market cap of $180 million “with nearly all constituents burning cash and trading well below book value" and “With Bitcoin mining largely unprofitable given recent higher electricity prices and lower Bitcoin prices, we predict that many miners will restructure or merge.”
Recent research from CryptoSlate has exposed that the price of BTC is now lower than its all-in-sustaining cost to mine, signifying a significant decrease in value.
Sigel confidently forecasted that Ripple would not ultimately prevail in the SEC lawsuit “may coincide with this final downdraft, which would take out nearly the entirety of the post-2020 halving bull market.”
Sigel attributed the causation to multiple factors including sanctions, political reaction to inflation and micro-management of economic activities. “facilitate the ‘energy transition”.
However, the Bitcoin expert, Sigel foresees BTC rebounding to a high of $30,000 by the “second half of 2023” with the aid of moderating inflation levels and energy issues. With the potential for stability in Ukraine and an upsurge in M2 supply, he anticipates that crypto will initiate a new bull market phase soon.
Sigel said, “Merely a lack of bad crypto-specific news, under the above scenario, could cause the price of Bitcoin to climb a wall of worry back to $30K again.”
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