By George Ward
Matthew Sigel, the Head of Digital Assets Research at VanEck, a global investment manager, has released his prediction for BTC in 2023. He stated that Bitcoin would trade at $10,000 to $12,000 in Q1 2023.
According to him, this fall would mark the end of the bearish market and usher in the bull season. In addition, Sigel predicted that prices would drop to these depths “during a wave of mining bankruptcies.”
BTC Miners To Merge Or Restructure – Sigel
In VanEck’s released statement, Sigel said the middle market capitalization of the MVIS Global Digital Asset Mining Index is currently at about $180 million. Meanwhile, all the index constituents are “burning cash and trading below book value.”
“BTC mining is currently not profitable due to low prices and increased power prices. Hence, we expect several miners to merge or restructure,” the statement read. Interestingly, an on-chain data report revealed that the price of BTC has dropped to a point where it is lower than the cost of mining it.
Sigel forecasts that Ripple will lose its case against the SEC. This loss may coincide with this last “downdraft and would wipe away practically the whole post-2020 halving bullish market.”
Furthermore, the VanEck executive stated that poor market sentiment and several crypto firm implosions caused BTC’s price fluctuations. Sigel noted that BTC has traded like a risky asset in the previous year. Also, the value of the flagship currency has been sensitive to “interest rate hikes.”
Bitcoin To Hit $30,000 By The Second Half Of 2023
Sigel attributed the BTC situation to multiple factors. They include the political reaction to rising prices, the increased sanctions, and the micromanagement of economic activities.
Furthermore, Sigel predicted that BTC’s price should reach $30,000 by H2 2023. Forces that Sigel believes will drive the price to $30,000 include low inflation, reduced energy crisis, and the end of the war in Ukraine.
He further said that an improvement in the total money (M2) supply might kick-start a bullish run in the market. According to Sigel, a lack of bad crypto news coupled with the above scenario should push Bitcoin’s price back to $30,000.
However, the crypto sector has started 2023 on a good note, with no significant crisis recorded this year. Meanwhile, the FTX bankruptcy case is still ongoing.
Sam Bankman-Fried, the company’s ex-CEO, is currently facing fraud charges. The crypto entrepreneur, who the court granted bail, appeared for court proceedings a few days ago.