Although several experts predict that the price of Bitcoin will reach six figures at some point in the future, the short-term projection points to a bear market, where the cryptocurrency could even fall below $6.
Economist Harry Dent, author of “The Great Depression Ahead” and writer of financial newsletters, said that the price of Bitcoin will remain within a prolonged bear market, possibly lasting until 2024.
During a interview Speaking to the economics outlet Kitco News, Dent noted that the current macroeconomic situation will lead markets, including the cryptocurrency market, to an imminent crash.
According to the economist, there is a bubble “in everything” that will soon burst and that will affect Bitcoin, stocks and gold.
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On the threshold of a new “crypto winter”
According to their predictions, within this bear market, the price of Bitcoin could test between $3.000 and $7.000 per unit; levels that have not been seen since the correction caused by the global expansion of Covid, at the beginning of 2020.
However, just as he believes that a market crash is imminent, Dent also noted that in the long term, both Bitcoin and gold are in for a major recovery. The economist does not rule out the possibility of seeing Bitcoin trading above $500.000 per unit in the next 10 years.
He also said that, within the panorama of the new digital economy, Bitcoin has great possibilities of replacing gold as a reserve of value and becoming the new global financial standard.
Bitcoin adoption influences its price
Other experts in the financial sector and cryptocurrencies have also been talking about the possible price of Bitcoin in the market, now that the crypto industry is going through a difficult time, after the fall of UST and LUNA, the global economic situation and the monetary policies adopted by the Federal Reserve (FED) to control inflation.
As for adoption levels, last March, Dan Morehead, CEO of Pantera Capital, noted that Bitcoin's price will grow as its use increases globally. For Morehead, it is possible that the cryptocurrency will grow up to 10 times in the market by 2025. According to his predictions, BTC could reach $400.000 per unit driven by the growth of institutional investment and its acceptance as a new, safer and more efficient form of digital money.
“When everyone with a smartphone is using crypto, it will be at a much higher price,” he said during an interview on Bloomberg TV.
Financial services company JP Morgan, which has recently been opening its doors to the crypto industry and the metaverse, agrees with Morehead's assessment. JP Morgan analysts believe that mass adoption, especially from Millennials and younger generations, will be an important driver for the cryptocurrency industry, which could benefit the price of these assets on the market in the long term.
The optimistic predictions made by Dent and Morehead about the future price of Bitcoin have something in common: they are both estimated for after the next halving cycle.
Bitcoin's fourth halving will arrive in 2024
It is estimated that The next Bitcoin halving will come in March 2024.
The halving is an event specific to the Bitcoin blockchain, in which the reward that miners receive for validating blocks and confirming transactions is halved. This event is the mechanism used by the blockchain to control the issuance of the cryptocurrency and guarantee its deflationary tendency.
Since the Bitcoin protocol is designed to issue a maximum of 21 million coins, which will be reached around the year 2140, the price of Bitcoin tends to rise after each halving event.
By halving the miners' reward, the amount of new bitcoins being created on the network becomes smaller and it is precisely this scarcity in the market that, together with its limited monetary issuance, has driven the price of BTC up in previous halving events.
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