Bitcoin ($BTC) price is set to surge to $30,000 in the second half of 2023, says VanEck

A fund manager at investment giant VanEck has forecast that the price of flagship cryptocurrency Bitcoin ($BTC) could surge to $30,000 in the second half of 2023 after falling to lows near the $10,000-$12,000 mark.

In a blog post making crypto predictions for the next year, Matthew Sigel, VanEck’s head of digital assets, wrote that he believes a wave of bankruptcies among cryptocurrency miners “marks the bottom of the crypto winter” and the price BTC will undercut at around $10,000 to $12,000.

Sigel added that Bitcoin is then expected to surge as “lower inflation, easing energy worries, a possible truce in Ukraine and a turnaround in M2 supply” will help it grow. According to Sigel, one reason for BTC’s poor response to rate hikes is that “the policy response to higher inflation in developed markets has been to try to cap energy prices, expand sanctions, and micromanage economic activity in order to reduce inflation.” to facilitate the energy transition”.

In developed markets, the analyst wrote, VanEck believes consumers will view cryptocurrency as a store of value and a hedge against M2 inflation, rather than overt inflation. In emerging markets, it will focus on remittances and neutral alternatives to “dollar hegemony”. Siegel added:

Should our recessionary expectations materialize, the US Federal Reserve would likely pause rate hikes as inflation eases while money printing and government budget deficits continue. Merely a lack of bad crypto-specific news in the scenario above could see Bitcoin’s price rally back to $30,000.

It’s worth noting that M2 is a measure of the money supply, which includes both M1 and so-called “near-money” assets. M1 consists of cash and check deposits, while near money refers to savings, money market instruments, and other time deposits under $100,000. These assets are less liquid and cannot be used for exchange as easily as M1, but can be quickly converted into cash or check deposits.

The analyst’s forecasts for the coming year include institutions using blockchain technology to “simplify custody and settlement” and the tokenization of more than $10 billion in off-chain assets.

Additionally, Sigel sees a nation announce that it will add BTC and other digital assets to its sovereign wealth fund over the next year. His prediction indicated that Saudi Arabia’s sovereign wealth funds are “already mining Bitcoin, albeit on a small scale.”

He also sees Ripple losing its lawsuit against the US Securities and Exchange Commission (SEC) and Ethereum ($ETH), allowing withdrawals from the Beacon chain. As CryptoGlobe reported, Ethereum core developers have set March 2023 as the tentative date for “Shanghai”, Ethereum’s next network upgrade, and could bring beacon chain withdrawals.

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