Although bitcoin is firmly in the $30k region, the outlook is optimistic, with someone putting the coin at $50k this year.
Bitcoin (BTC) price has been holding above $30,000 for a while now, despite its swings. However, market forces are severely threatening the King coin as inflation and unemployment in the US look unfavorable.
Several conditions may affect the Bitcoin price in the near future. For example, the US Federal Reserve recently published pessimistic minutes indicating the possibility of a rate hike. It also struggles to fight inflation. The release caused BTC to plunge below $31,000 on Thursday, along with a global stock market slump.
According to Nexo co-founder Anthony Trenchev, not much may happen to Bitcoin, especially regarding the Fed’s decision. Trenchev said:
“With headline inflation still easing while core inflation holding steady, don’t expect the narrative to change much when it comes to this month’s Fed meeting.”
For now, these macroeconomic factors may not bode well for Bitcoin. However, a general expectation of inflation and unemployment data could keep BTC hovering around $30,000 until Thursday when that data becomes available.
According to CoinMarketCap data, Bitcoin is trading at $30,163, after declining by 1.57% in the past seven days.
$30K Bitcoin is moderate considering the other predictions
Although Bitcoin has lost nearly 3% in the past few days, 2023 has been very commendable. In the past month, BTC is up nearly 17%, up more than 48% in the last year. Since January, investors have seen an 82.15% increase in the value of their investment portfolios. Given the steady rise, there is still an overall bullish trend in bitcoin sentiment.
Multinational banking and treasury giant Standard Chartered released a report on July 10 with a bullish outlook for Bitcoin. According to the report, BTC could reach $50,000 this year and $120,000 in 2024.
One of the reasons for Standard Chartered’s bullish trend, especially for the coming year, is Bitcoin’s upcoming halving. The halving event sees Bitcoin block rewards halving – 6.25 BTC to 3.125 BTC for next year’s event. Decreased supply creates scarcity which usually drives the price of Bitcoin.
Interestingly, Standard Chartered initially predicted $100,000 for Bitcoin in December 2024. The bank believes that the crypto winter is over and that Bitcoin will continue to increase and eventually reach $100,000 next month. However, Standard Chartered analyst Jeff Kendrick added to this projection. Kendrick believes that “profitability per miner per BTC mined” indicates that a miner can maintain cash inflows and sell less. This reduces the net supply of Bitcoin and increases its price.
Another enthusiastic Bitcoin prediction came from BitMex co-founder Arthur Hayes who believes that the AI boom will benefit Bitcoin. at recent days PublishingHayes said that bitcoin could become an artificial intelligence (AI) currency.
Hayes argues that future AI tools may require blockchain-based payments because they will need more than “analogue banking system (i.e.) segmented between geographic regions and the banks themselves.” He then argues that Bitcoin would be the best bet because it is available on a blockchain, censorship-resistant, scarce, and has a long, provable lifetime.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
