The Bitcoin price has seen a strong increase in 2023 so far. Although the last few days have brought a slight setback, the Bitcoin price in 2023 has so far risen by 90% since the beginning of the year. The Bitcoin price could rise to $70,000 over the next few months. What are the reasons for this Bitcoin prediction?
Where will the Bitcoin Price be in 2023?
The Bitcoin price has seen a strong increase in the last few weeks. At the turn of the year 2022/2023, Bitcoin was at a low for the current bear market, at the $15,500 mark. By the end of April, the price had gained around 90% in value. This means that the year 2023 is again much more bullish than the year 2022.
But we are still before the next Bitcoin Halving. The next bull market usually starts after the halving. However, the second year of the bear market has always been a time in the past when the Bitcoin price could rise more sharply at certain times. This is the case again this year.
Top 3 Reasons why Bitcoin can reach $70,000
In order to reach the $70,000 mark, the Bitcoin price would have to x2.5 over the next few months. This seems to be a long way off at the moment. Nevertheless, $ 70,000 for the Bitcoin price by the end of this year can still be doable.
Here are 3 reasons why the Bitcoin price should reach the $70,000 mark in the next few months:
1. Bull market peaks
In the last Bitcoin cycles, the Bitcoin price repeatedly peaked at the turn of the year. This was the case at the turn of the year 2017 / 2018 and in 2021 the all-time high did not come until the fourth quarter.
By the end of 2025, the Bitcoin course should see a strong bull run if history and the market mechanisms of the halving repeat themselves. The Bitcoin price may rise even more sharply at the beginning of 2026.
2. 10x is not a big rise between bear and bull market
In the last Bitcoin cycle, the low of the Bitcoin price was slightly above the $3,000 mark. The all-time high in the 2021 bull market is above $68,000. So we saw a rise of over 20x between bear and bull markets.
It is well known that the increases between cycles decrease over time. In the bear market we saw a low of $15,000. However, this low was mainly due to the FTX crisis, which was an exception. Since then, the Bitcoin price has risen sharply again. A 10x increase in the next 2 to 2.5 years is definitely within the realm of possibility.
3. The Bitcoin price could be severely undervalued at the moment
There are 2 mechanisms that could make the Bitcoin price currently undervalued:
- Due to the Bitcoin mining ban in China, the hash rate of Bitcoin mining collapsed for a short time. This may have been the main reason why the 2021 all-time high did not reach $100,000.
- The major FIAT currencies such as the US dollar and the euro have strengthened as a result of the tightening monetary policy of the central banks . The central banks can hardly maintain this monetary policy due to the negative effects on the banks.
If the Bitcoin price “adjusts upwards” again with loose monetary policy, the price could rise as much or even more than in the last bull market.