Matthew Sigel, the head of digital assets research at global investment behemoth VanEck, predicts wild fluctuations in Bitcoin (BTC) in the coming months.
In a post detailing his crypto predictions for 2023, Sigel predicts that Bitcoin will fall to between $10,000 and $12,000 in the first quarter of next year.
According to Sigel, Bitcoin miners are currently unprofitable, and the resulting bankruptcies will cause a drop in the price of the flagship crypto asset.
“Bitcoin will test $10,000 – $12,000 in Q1 amid a wave of miner bankruptcies, which will mark the low point of the crypto winter. The median market cap of the MVIS Global Digital Assets Mining Index is now only $180 million, with nearly all constituents burning cash and trading well below book value. We predict that many miners will restructure or merge as Bitcoin mining becomes increasingly unprofitable due to recent higher electricity prices and lower Bitcoin prices.”
The MVIS Global Digital Assets Mining Index measures the performance of companies that generate at least half of their revenue from mining digital assets or other crypto-mining-related activities.
In terms of a bullish forecast, VanEck’s head of digital assets research believes Bitcoin could reach $30,000 by July of next year as monetary and fiscal policies are eased.
“Meanwhile, should our recession expectations materialize, the Federal Reserve would likely pause raising rates amidst softening inflation, while money printing and government budget deficits continue. Under the above scenario, a lack of bad crypto-specific news could cause the price of Bitcoin to climb back up to $30,000.”
Bitcoin is currently valued at $16,692, down more than 4% on the day.
