Current Bitcoin Price
At the time of writing this article, the price of bitcoin is approximately $24,000 per coin. In the past, bitcoin reached its historical maximum of $64,000, but after that, the value of the coin began to fall. The reason for the fall of the cryptocurrency can be considered the Fed's struggle with inflation by raising the key rate. Despite this, many experts believe that bitcoin has good potential for growth in the near future.
Forecasts for 2023
According to the forecasts of some analysts, bitcoin may reach the $100,000 mark by the end of 2023. This is due to the fact that more and more investors are beginning to recognize bitcoin as a form of alternative investment, as well as with the growing adoption of cryptocurrencies as a means of payment.
In addition, the impending recession and stagflation may give the cryptocurrency an additional driver for growth as a protective asset. The growing wave of sanctions redirects cash flows to anonymous cryptocurrencies, which popularizes digital assets already.
Forecasts for 2028
In the more distant future, forecasts for the price of bitcoin become less accurate. Some experts predict that by 2028, the price of bitcoin could reach $500,000 or even $1 million. However, it should be borne in mind that such forecasts are based on many factors that may change in the future.
Factors affecting the price of Bitcoin
There are many factors that can affect the price of bitcoin in the future:
- Cryptocurrency regulation by governments;
- The level of acceptance of cryptocurrencies as a means of payment;
- Growing interest from institutional investors;
- Technological progress and development of blockchain technology;
- Problems in the financial sector of the economy.
The impact of Fed policy
If the Federal Reserve System continues to raise the key rate, this may lead to a decrease in the price of bitcoin. A high rate may lead people to be inclined to invest in more traditional assets such as stocks and bonds, which may reduce the demand for cryptocurrency.
At the same time, if the world economy falls into recession, this may lead to an increase in interest in bitcoin as a means of protection against inflation and devaluation of national currencies. In this case, the price of bitcoin may rise, as more and more investors will consider cryptocurrency as a way to save their investments.
Thus, if the Federal Reserve System raises the rate by another 0.5%, and the global economy falls into recession, the bitcoin exchange rate may decline in the first half of the year, but then begin to grow as investors' interest in the cryptocurrency increases.
Risks of investing in Bitcoin
Like any investment, investing in bitcoin involves the risk of capital loss. Bitcoin is a highly volatile asset, which means that its price can fluctuate rapidly. In addition, the cryptocurrency market is not regulated as strictly as traditional investment markets, which can also increase the risk of investing.
Guarantee of future growth
One of the signs of future growth is the limited number of bitcoins (21 million) that can be mined, which makes it more valuable and desirable. Bitcoin can also become an investment option for people who do not trust traditional financial institutions. The world's central banks have been printing money for many years without stopping, filling the world with unsecured liquidity. Such a policy causes an increase in prices for all goods and securities.
In the future, the cryptocurrency will also grow, at a rate exceeding the issue of money. The world's central banks no longer have enough of the current rate of increase in the level of liquidity, they need acceleration. Slowing down the issue, and even more so stopping it, will destroy the modern financial system. After the dollar was untied from the benchmark gold, the volume of global liquidity is constantly growing. And at what rate is the number of values that can be bought with this money growing?
The price of bitcoin can vary significantly depending on many factors, including the adoption of cryptocurrencies as a means of payment, the growth of interest from institutional investors, regulation by governments and regulatory authorities, as well as technological progress.
The indisputable advantage of bitcoin is its independence from banks and fiat currencies, which is sewn into its technology. Of course, dozens of more modern and faster coins have already appeared, but bitcoin holds the first place in capitalization.
The world is expecting a wave of bankruptcies of financial institutions, which will be associated with economic crises and geopolitical upheavals. Thanks to this perspective, by 2028 bitcoin may cost tens of times more than it is now, but only a select few can appreciate the potential of the cryptocurrency today.