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Bitcoin to hit $10,000 support, and $40,000 resistance in 2023

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The year 2022 was a dramatic scene in the crypto industry with the crash of exchanges such as FTX, Luna, and Bitcoin staying below $32,000 for the entire H1. Looking into 2023, Bloomberg said in a report that while the bearish market forces are likely to pull Bitcoin into the $10,000 mark and Ethereum at $1,000, there is also a likelihood of $40,000 and $3,000 resistance for Bitcoin and Ethereum respectively.

If the mathematics behind Bitcoin continues with a reduced supply as demand and adoption increase, there will be a price increase provided all economic conditions are perfect.

For Ethereum in particular, the Merge gave a good edge to the second most popular cryptocurrency in the world. Bloomberg also projects that it will keep outperforming Bitcoin and equities in the financial market. And one major reason behind this is because of the utilities being built on Ethereum with a promising lower price of transaction fees.

“The fact that three of the top five assets listed on CoinGecko are crypto dollars when sorted by volume may be indicative of the value of Ethereum,” Bloomberg noted.

“Our bias is that there’s little in the long term to stop this advancing technology from doing similar to what the futures and exchange-traded-funds markets did”.

Losses in the US due to the absence of Bitcoin ETF

Speaking about the results of the financial market in 2021, the report highlighted that the resistance of Gary Gensler, the SEC Chairman, towards a Bitcoin ETF in the US “cost investors billions of dollars”. Thus, several investors had no other option than to interface with weak platforms such as FTX and Grayscale Bitcoin Trust.

It further argued that an entry of a Bitcoin ETF would have been regulated under the 1933 Act and while the ETF cannot stop the decline of the price of Bitcoin, investors can withdraw their assets at any time and those who decide to leave theirs, have it follow the price of Bitcoin closely.

In contrast with what couldn’t happen in the US, Bloomberg said that Canada and nations in Europe that deployed spot Bitcoin ETFs had lesser losses than the US. Hopefully, the lessons and impact from the fall of FTX “could bring about regulations that satisfy the SEC’s conditions for ETF approval” and this might start with GBTC.

Crypto beats gold, S&P, and crude oil 

Another significant reality for Bloomberg was the upper hand crypto had over gold, crude oil and S&P 500. The Standard and Poor’s 500 (S&P 500) is a stock market index that tracks the performance of the 500 biggest corporations listed on the stock exchanges in the United States. 

A breakdown from the report shows that the Bloomberg Galaxy Crypto Index (BGCI) from the end of 2019 till 2 December 2023 is up by about 200% while that of gold, the S&P 500, the Bloomberg Commodity Spot Index and US money supply is at 20-60%. 

This means that despite the rigorous volatility in crypto, no traditional asset class has outperformed the entire industry.

Read also;

Top 10 DeFi trends for 2023

Messari Report: Top 10 Cryptocurrency Trends in 2022

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