Insiders Say BTC Could Test New Highs in 2023

Bitcoin has gained nearly 70% so far this year — and industry insiders who spoke to CNBC remain optimistic, with one saying that the world’s largest cryptocurrency could reach new heights.

Bitcoin previously hit an all-time high of $68,990.90 in November 2021. Since then, it has dropped about 60%.

Marshall Beard, chief strategy officer at US-based crypto exchange Gemini, said $100,000 could be a possibility for bitcoin.

“I think bitcoin could break all-time highs this year,” Beard said, adding that the $100,000 price figure is an “interesting number.”

Beard said that if bitcoin hits its previous record high near $69,000, it “doesn’t take much longer for it to rise” to $100,000.

Bitcoin will need to increase about 270% to reach $100,000.

Paolo Ardoino, chief technology officer of stablecoin issuer Tether, said bitcoin could “retest” its all-time high near $69,000.

New record high predictions mark a more upbeat outlook than in January when industry executives told CNBC they expect 2023 to be a cautious year.

Part of the industry’s positive outlook on bitcoin today actually stems from how the asset performed during the banking turmoil caused by The fall of Silicon Valley Bank and the failure of two crypto-friendly lenders Silvergate Capital and Signature Bank.

Instead of crashing, bitcoin recovered.

Bitcoin advocates say this is proof that bitcoin is providing an alternative to the traditional banking system as a place for people to keep their money safe.

Oliver Linch, CEO of Bittrex Global, told CNBC in an interview at Paris Blockchain Week on Thursday: “I think the rally can be explained by saying, people freaked out with banking system by collapse”.

For years, bitcoin advocates have argued that bitcoin is a form of “digital gold” – a safe-haven asset that can provide investors with a hedge against inflation and a return on investment. Investing in turbulent times. But over the past few years, bitcoin has traded in correlation with stocks, especially the tech-heavy Nasdaq.

There are now signs of separation Bitcoin massively outperforms Nasdaq, many other risk assets and gold this year.

But bitcoin was also boosted on hopes that the banking crisis could reduce the ability of the US Federal Reserve to raise interest rates aggressively, which would support riskier assets like cryptocurrencies. death.

The discussion about where the price of the digital currency could go this year has been heated since Balaji Srinivasan, an investor and former chief technology officer at Coinbase, Betting on March 17th, bitcoin will be worth $1 million or more in 90 days. He bet 2 million dollars.

This bet was in response to a Twitter user who said they would bet $1 million that the US won’t go into hyperinflation.

Srinivasan argued that “the world revalued Bitcoin into digital gold” as hyperinflation began, eroding the value of the US dollar, and countries, individuals and companies began to buy large amounts of it. bitcoin. Hyperinflation is a large increase in prices in an economy.

The $1 million price point for bitcoin would be about 3,600% above the current price of the digital currency.

Most people poured cold water on this prediction.

Gemini’s Bear said “there could be a world where bitcoin hits a million dollars” but not in 90 days as Srinivasan had bet.

“I think for bitcoin to hit a million dollars in 90 days, some crazy things are happening in the world, which we don’t want,” said Beard, adding that it could take 10 years to get close. that number.

Tether’s Ardoino echoed the view that if bitcoin hits $1 million in 90 days, it could mean an unusual economic event.

“I kind of doubt it, because honestly, I wasn’t even hoping for it,” Ardoino told CNBC in an interview at Paris Blockchain Week, which aired on Thursday.

“Because if bitcoin hits such a high price, [it] which means the whole economy will collapse. I’m not sure [that] is the world we want to live in.”