The current analysis was prepared in collaboration with the Bitget crypto exchange platform. Present in more than 100 countries, Bitget is a cryptocurrency exchange created in 2018. With a user base of more than 8 million, the digital asset platform offers a variety of services to its customers. These include derivatives trading, spot trading, social trading and copy trading. Thanks to its innovative products, bitget seduces both amateurs and professionals.
Bankruptcies in shambles?
According to Standard Chartered, bitcoin is still far from its lowest point. British bank analysts believe that the value of BTC could fall sharply during the year 2023. Many threats indeed hang over BTC. Starting with the consequences of the FTX case. Its repercussions could thus have a long-term impact. Especially since many companies and start-ups in the sector are directly exposed to the platform declared bankrupt. A month later, we are perhaps only at the beginning of a series of cascading bankruptcies. Results ? BTC should drop significantly if the crypto industry were to falter.
Recession hangs over the global economy
Bitcoin (and cryptos in general) have benefited from a buoyant global economy and the post-2020 rebound. It must be said that the market has certainly been helped by the money printing of the past two years. Since 2010, the money supply in euros has almost doubled. A large influx of liquidity that has undoubtedly accelerated the growth of the bitcoin price in recent years. But the source begins to dry up. Without this infusion of money, isn’t bitcoin’s true price more around the four digits? Be that as it may, the macroeconomic context does not play in favor of a rapid return of BTC towards $60,000, as it did last fall. The recession could do damage.
A lack of interest in bitcoin, in favor of other asset classes?
Even though bitcoin remains the king of cryptocurrencies, there are other attractive digital assets. This is the case of the tokenization market. This new asset class uses blockchain to provide another way to invest. For example, real estate can be tokenized and thus be divided into digital and secure title deeds. Potentially, the tokenization of the economy could relate to a lot of objects in our world. Investors could then turn away from bitcoin to other sectors that are more innovative in their eyes.
The energy crisis is about bitcoin
At what price will BTC be at the exit of winter 2023 ? Hard to say. However, the energy crisis mainly concerns Europe. Indeed, the rest of the world has no specific problem. Still, it is clear that in the event of a severe crisis, bitcoin will be the last of the problems for investors. Whereas in France, we are already talking about major load sheddingyou will have to wait spring 2023 to make a first assessment. Because despite a spring historically favorable to the markets, this year could be particularly unprecedented.
Furthermore, are we heading towards a bankruptcy of bitcoin miners? This is what certain indicators suggest. The explosion of hashrate, the huge drop in the price of machinery, the high price of electricity. So many factors that today many bitcoin miners are no longer profitable. Some are reduced to unplug their machines of mining. These same machines bought during the bull market thanks to the debt. Problem: the cash flow of a lot of companies in the sector is starting to run out, which accelerates the sale of machines and indirectly a disinterest in bitcoin.
Conclusion
Many negative signals are piling up in the crypto market. The price of bitcoin could well bear the brunt of this unprecedented situation. FTX affair, global recession, energy crisis in Europe: all factors that can further lower the price of bitcoin in 2023.
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