In 2021, bitcoin hit its peak price of close to $69000, with many experts predicting it would reach $100000 soon. But the crypto market entered a bear phase last year. Currently, the value of one bitcoin is just over $20,000, with the crypto market at a 70% correction since the peak of 2021.
It got worse for crypto last year, as it witnessed several collapses from Terra to FTX. The ongoing Ukraine-Russia war and the threat of a global recession have further dampened crypto investors’ confidence.
So with the current global scenario, will bitcoin hit $100,000 by the end of 2023? Crypto experts have mixed opinions and predictions about bitcoin’s performance this year. While some have revised their high price rise predictions, many remain optimistic that bitcoin will reach new highs soon and patient investors will be rewarded. This article will examine the predictions of crypto analysts and try to figure out when bitcoin could hit $100,000.
When Will Bitcoin Hit $100,000?
Since bitcoin’s inception, there have only been three years without a return of at least 48 percent. Bitcoin would need to rise by 500% to hit $100,000 in 2023. This rise might seem impossible, but bitcoin has risen more than 500% twice since its inception.
We need to analyze patterns around Bitcoin’s halving events to get a better understanding of when bitcoin will hit $100,000. Bitcoin undergoes a halving event every four years or after 210000 blocks are added to its blockchain. Bitcoin rewards for miners are cut in half after a halving event. This event also reduces the rate at which new bitcoin enters circulation. There have been three halving events so far. The original reward for mining was 50 bitcoins, but it has come down to just 6.25 bitcoins after subsequent halving events. The mining reward will fall to 3.125 BTC in May 2024.
A pattern emerges on Bitcoin’s price chart when we analyze past halving events. These are estimates or averages and should not be used as reasons to try and time the market. The price of bitcoin bottoms out when the next halving event is about 18 months away. This pattern suggests that bitcoin has currently found a price bottom. Bitcoin has gradually risen to a price of 60% of its previous peak as the halving event comes closer. Bitcoin’s price would be around $40000 in May 2024 based on this pattern. This analysis predicts a good return, but it means Bitcoin will not hit $100,000 in 2023.
Bitcoin Predictions
Let’s start with an optimistic prediction from the founder of Altana Digital Currency Fund, Alistair Milne. Alistair predicts that bitcoin can hit $45,000 this year, depending on inflation. He mentions on Twitter that he is all in and writes that bitcoin will prove its resilience. A long-time crypto investor, Tim Draper, predicts that Bitcoin will rise by mid-2023. Both of these men say the upcoming 2024 halving event is one of the main reasons for their prediction.
Not everyone is optimistic about Bitcoin’s price rally in 2023. The billionaire founder of Morbius Capital Partners, Mark Mobius, predicts that the price of bitcoin will fall further to $10000 this year. He points out that rising interest rates and tightening monetary policies will hamper bitcoin’s performance this year
Read more: What is Crypto
Conclusion
Many analysts predict that bitcoin will hit $100000 soon but not in 2023. The pattern around halving events also shows that a new peak is usually reached 18 months after the halving event. Again, these patterns are averages based on previous halvings. So based on the halving price pattern, bitcoin can go 30% higher than its previous peak after the 2024 halving event. This means bitcoin can hit $100,000 in 2025.
Crypto investors will likely need to wait till 2025 for bitcoin to hit its next all-time high if past trends hold. This prediction should not be viewed in a negative light, but rather as an opportunity. Currently, Bitcoin’s price is down by 70%, and based on the above predictions, further losses look minimal. Now could be a good time for users to invest in bitcoin to gain long-term returns.
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