Bitcoin to hit $42,000 peak in 2023: Finder survey

by James · April 19, 2023

Australia-based information services platform Finder said it ran a survey in April of 32 crypto industry specialists to look at the price outlook for Bitcoin in the coming decade. According to the average predictions for 2023, Bitcoin will reach a maximum of $42,225, a minimum of $17,026 and end the year at $35,485.

See related article: Bitcoin Retakes USD 30,000, Ether Goes Higher After SEC’s Gensler Grilling; Polkadot leads the winners

Fast facts

Bitcoin’s price will be closely linked to developments in the banking industry, according to Ben Ritchie, director of Digital Capital Management AU. “A shakeout in the banking industry could demonstrate Bitcoin’s ability to store value, offering an alternative investment option without government and central bank controls,” he said. But the downside is dwindling liquidity and regulations throttling access to banks for the crypto sector, he added.
The lack of trust in the traditional banking system is seen as the biggest factor behind Bitcoin’s surge in March, which witnessed the collapses of three US banks and the takeover of Switzerland’s Credit Suisse, according to the survey.
“Bitcoin has been shown to be negatively correlated with the failure of traditional financial institutions. While banks have collapsed, the use of Bitcoin among institutions and retail investors is increasing,” said Rishabh Gupta, director of crypto incubator and consultancy TDeFi, who predicted Bitcoin to reach $75,000 in 2023.
“Pension funds have started allocating 2-3% capital to Bitcoin and other digital assets. After the halving in 2024, Bitcoin supply will become more scarce, which will have a positive impact on the price,” Gupta said.
Most survey respondents are positive about the current trend in Bitcoin, with 52% saying now is a good time to buy, 32% saying it’s a good time to hold, and 16% seeing a selling opportunity.
However, 72% of respondents said the collapse of crypto-friendly banks in the US could hinder cryptocurrency adoption as US digital asset firms struggle to find banking partners.
Finder’s survey predicts Bitcoin’s price to reach $99,781 by 2025 and $297,848 by 2030, which is 29% and 58% higher than the January 2023 survey.
“BTC will receive quite significant capital inflows from institutional investors following the decline in interest rates. Simultaneous, [the market] the capitalization of BTC is still very small [and] new money will easily push the price up.” said Ilya Volkov, CEO of cryptocurrency exchange and lender YouHodler.
The latest slowing economic indicators in the US have added to optimism that the Federal Reserve may soon end its year-long cycle of raising interest rates to curb inflation. Analysts at CME group expect an 84.6% chance of a 25 basis point rate hike in May, followed by a rate cut by the end of 2023.
However, Atlanta Federal Reserve President Raphael Bostic said on Tuesday that it was still too early to consider rate cuts given the stubbornly high rate of inflation, according to CNBC on Tuesday. The inflation rate is around 5%, compared to the Fed’s target of 2%.