When Will Bitcoin Bottom Out? Analysts Weigh In

We’re early into 2023, and with 2022 being such a crazy year for bitcoin fans, it appears many analysts are warning about what we should be aware of in these next 12 months so traders can make appropriate investing decisions and keep themselves safe. Bitcoin May Bottom Out Soon One of the people to talk […]

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We’re early into 2023, and with 2022 being such a crazy year for bitcoin fans, it appears many analysts are warning about what we should be aware of in these next 12 months so traders can make appropriate investing decisions and keep themselves safe.

Bitcoin May Bottom Out Soon

One of the people to talk about what we should expect is Tim Enneking, the managing director of Digital Capital Management. He says one of the big things that’s happened is crypto is beginning to mirror more traditional assets like stocks. This has ultimately made it vulnerable to economic issues like inflation.

In an interview, he stated:

The biggest variable affecting BTC at present is, unfortunately, correlation. Assuming correlation remains high (and there is no reason to assume otherwise), crypto markets are beholden to fiat markets, which means inflation and interest rates. Since interest rate increases (first derivative from freshman calculus) have already begun slowing, and they will almost certainly stop no later than mid-March (after probably a final 50 bps increase on Feb 1 and then a first and last 25-bps increase), I wouldn’t look for a major breakout for BTC until then.

He did offer a more positive outlook on bitcoin’s short-term stamina, however, and he does think a gradual (albeit small) rise can be expected in 2023 just like it was seen in 2019 after the disastrous 2018. He commented:

The good news is BTC is putting in a solid bottom, which, however, leaves everyone haunted by the seeming floor at $6K from late June to early November 2019, which felt like a strong bottom until it fell out and BTC went to $3+K for four months. Since the fallout from Celsius, Terra/Luna, FTX, Alameda, etc., has slowed markedly, our feeling is that we’re at or very near the bottom (which is $15.5K). As strange as it feels to write this sentence, a couple good days on Wall Street and we should see BTC threaten $20K.

Joe DiPasquale – the CEO of crypto hedge fund Bit Bull Capital – also threw his two cents into the mix, mentioning in a statement:

At the moment, many are predicting a capitulation to under $10K. However, we don’t think the chances of such a possibility are higher than bitcoin bottoming around $13-$15K.

A Lot of Bad Stuff in the News, Lately

Marc Bernegger – co-founder of crypto fund Alt Alpha Digital – said:

Bitcoin already experienced similar phases in the past years, which could be summarized as ‘times of ignorance and disinterest.’ We saw several very negative events in the last few weeks and months, and many investors lost confidence in bitcoin as a potential hedge during downturns of traditional markets. Many fundamentals indicate a bottom at the actual price levels and investors like hedge funds, family offices, and asset managers wait on the sideline to (re)allocate part of their alternative assets into bitcoin.

The post When Will Bitcoin Bottom Out? Analysts Weigh In appeared first on Live Bitcoin News.

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