In today’s crypto news, read about Bitcoin enthusiasts continually making overly optimistic and, at times, unachievable predictions for their chosen money. Moreover, following this mini-bull run, there are various theories circulating that the world’s largest digital coin, BTC, may potentially reach $10 lakh by the year 2025. Meanwhile, a comfort for miners who have had to pay high debt burdens as revenues have remained stagnant between $15 million and $21 million for the majority of the second half of 2022. They’re still a far way from the peak of $61.2 million in November 2021.
Can Bitcoin Reach a Million Dollars by 2025
Original Source: Bitcoin Price Prediction: Can Bitcoin Reach $1,000,000 by 2025?
Bitcoin and other cryptocurrencies struggled in 2022. Bitcoin, the largest cryptocurrency, lost roughly 65% of its market value in 2022. The Terra Luna crisis, FTX collapse, and macroeconomic factors took crypto enthusiasts off unprepared.
What will happen next? Will Bitcoin ever recover?
Bitcoin, the world’s largest cryptocurrency, was over $27,850 at the time of writing after hitting a nine-month high at $28,000. After failing to break $28,000 last week, Bitcoin prices corrected. It remains at $27,000 with a $28,000 resistance level. In the previous 24 hours, the global cryptocurrency market value rose about 0.68% to $1.16 trillion.
Bitcoin is struggling to reach $28,000, but its dominance is growing. From June 2022, Bitcoin dominance is above 45%. Bitcoin’s dominance grows while most altcoins including Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), Litecoin (LTC), and others fall, and BTC stays over $27,500.
After the tense periods, Bitcoin has rebounded over 20%. Bitcoin is currently trading above 27,500.
Bitcoin fell below $20,000 a week earlier. The Silicon Valley Bank fallout shook the U.S. financial industry this week.
As Bitcoin has had a turbulent month, ordinary investors should be careful and mindful of its every move. Remember that bitcoin is still 65% behind its all-time high. The U.S. and UK macroeconomic situations have caused such volatility.
The Money Laundering Act covers all cryptocurrency transactions in India. The Union Finance Ministry of India said in a gazette statement that all virtual currency and digital asset transactions will fall under the Prevention of Money Laundering Act (PMLA).
The new development may hurt India’s crypto community. The industry-at-large applauded the action as a step toward regulating this arena, where enforcement agencies will immediately address any disparities in the absence of regulators.
Once Bitcoin surpassed $16,800, it displayed bullish signs. The price accelerated and showed optimistic indications till today. Many expect Bitcoin to continue its relief surge this month as the situation stabilizes.
Experts are positive on Bitcoin because of the 2024 Bitcoin halving event. Every four years, Bitcoin payouts to miners are slashed in half (to 3.125 BTC). Halving reduces supply, which boosts Bitcoin prices. Halving has historically boosted Bitcoin’s price.
So, Bitcoin halving occurrences have created long-term positive drivers for the price. The Bitcoin halving event reduces supply and boosts BTC prices due to its deflationary nature. Bitcoin is restricted because governments and central banks cannot print it.
Moreover, “Bitcoin Whales” have resumed BTC accumulation. According to on-chain aggregator Santiment, huge Bitcoin whales are storing 1,000–10,000 BTC in their wallets, indicating that investors have been filling their wallets with BTC, which may indicate a Bitcoin price rebound.
Bitcoin: $100,000 by 2023?
Bitcoin has risen over 80% this year. With such enormous and unexpected increases, it has surpassed numerous other major assets and offered tremendous returns to BTC buyers at troughs.
The industry is pleased to see the world’s largest cryptocurrency’s new peak and hopes for more. Gemini’s chief strategy officer, Marshall Beard, expects Bitcoin to reach new highs this year. He added the $100,000 price figure is “interesting, assuming bitcoin rises to its prior record high of about $69,000”.
Bitcoin must rise 270% to hit $1 lakh if it reaches this mythical amount.
Tether CTO Paolo Ardoino is likewise positive about Bitcoin. Bitcoin might “retest” its $69,000 high, he claimed.
Bitcoin proponents, who view it as a “safe-haven investment” or “digital gold,” expect 2023 to be a good year.
Bitcoin, which surged on optimism that the U.S. financial and banking crisis would diminish the Federal Reserve’s interest rate rises.
Bitcoin: $1,000,000 by 2025?
Bitcoin fans constantly make optimistic and sometimes unrealistic forecasts. With this mini-bull run, some believe Bitcoin might reach $10 lakh by 2025.
Several crypto figures have reiterated this $10 lakh figure.
Samson Mow, CEO of crypto business JAN3, a Chinese-Canadian Bitcoin entrepreneur, predicts a $1 million cryptocurrency in five years.
With further wild predictions, investor and former Coinbase technology head Balaji Srinivasan wagered that Bitcoin may hit $10 lakh or more in 90 days.
Srinivasan made this bold claim because he believes hyperinflation will weaken the currency and cause people to acquire more Bitcoins. Hyperinflation is a significant price increase over time.
Crypto experts think Bitcoin might reach $10 lakh in the future, but not in 2023 or 90 days.
“Bitcoin to be a million dollars in 90 days, some weird things are occurring in the world, which we don’t want,” said Marshall Beard, chief strategy officer of Gemini, a U.S. cryptocurrency exchange.
Another group of investors, corporates, and huge institutions are pessimistic on Bitcoin and predict it will tumble soon. They deemed this rally a big “bull trap” rather than a “bull run”. Mark Mobius, the wealthy founder of Mobius Capital Partners, forecast a significant drop in 2022, saying Bitcoin may fall below $10,000.
Another maverick investor, Matthew Sigel, head of digital assets research at VanEck, a worldwide investment management, predicts Bitcoin will plummet below $12,000 due to increasing energy prices.
Standard Chartered’s Bitcoin projection is shocking. In 2023, Bitcoin might drop below $5,000.
Analysts believe increasing interest rates and stricter monetary policy will prevent Bitcoin from rebounding soon. Investors won’t purchase Bitcoin in this uncertain environment. Bitcoin holders may sell, further pressuring markets.
How Should 2023 Indian Investors Handle Bitcoin?
What should Indian crypto investors do with such diverse Bitcoin predictions? Given such uncertainty, it may be wise to watch Bitcoin closely rather than taking any action that may result in major losses. Indian crypto sector professionals agree that crypto investors are in a wait-and-see mode and should proceed cautiously.
Unocoin co-founder and CEO Sathvik Vishwanath said, “Investor attitude toward bitcoin remains divided, indicating caution in the face of rising interest rates and a surging US dollar.
He believes Bitcoin will remain a popular investment and its technology will continue to intrigue many sectors. Bitcoin and other cryptocurrencies’ futures are unpredictable, like any market. In the next months, rising interest rates and inflation fears will be key.
TaxNodes founder and CEO Avinash Shekhar advised bitcoin investors to be educated. Investors need a plan to meet their aims. Crypto must be weighted according to investing goals and results.
He recommends investing little sums of savings in crypto occasionally to preserve their capital basis.
Nonetheless, some market analysts believe Bitcoin will climb again. ZebPay COO Raj Karkara looks optimistic about Bitcoin. He added “the fundamentals of Bitcoin remain rock strong irrespective of market conditions.” In 2022, up to 60% of circulating Bitcoin has not moved, and long-term investors are still positive on Bitcoin, according to market intelligence firm Glassnodes.
Karkara predicts Bitcoin might climb again in 2023 without macroeconomic impediments. Crypto traders and investors should thoroughly investigate an asset’s fundamentals and technicalities before buying or selling. Investors might also hedge market volatility using a Bitcoin SIP.
Bitcoin forecasts are optimistic and negative. Bitcoin’s future is unknown. Bitcoin’s resilience allows for big comebacks. Veterans have predicted the Bitcoin bubble will crash for a decade. Yet, the Bitcoin poster boy remains popular and has helped investors make billions.
Bitcoin Miners Manage to Avoid the Bear Trap
Original Source: Cryptoverse: Bitcoin miners escape the bear trap
After a harsh crypto winter, bitcoin miners are enjoying spring.
The cryptocurrency’s surge to above $30,000 this year and lowering electricity rates have saved power-hungry bitcoin miners.
Blockchain.com statistics shows a 30-day average of $27.34 million in mining revenues, the highest since June.
Miners relieved as sales hovered between $15 million and $21 million for much of 2022. They’re still below November 2021’s $61.2 million peak.
“Last year, several public mines faced insolvency. Considering the current bitcoin price, these firms’ cash flows have much increased and most should have no trouble meeting their commitments “Luxor bitcoin mining services analyst Jaran Mellerud.
Mellerud said several miners have restructured and reduced debt in recent months, improving their debt-to-equity ratios.
According to Luxor, Marathon Digital Holdings’ debt-to-equity ratio has declined to 0.5 from 2 since the start of the year, while Greenidge Generator Holdings’ (GREE.O) has dropped to 5.8 from 11.7.
Marathon (MARA.O) and Riot Platforms (RIOT.O) have seen their share prices treble this year, while the Valkyrie Bitcoin Miners ETF (WGMI.O) is up 162% and Greenidge is up 137%. They’ve all lost money since early 2022.
Bitcoin mining involves a network of computers validating a blockchain transaction block. Miners compete to solve complex arithmetic puzzles with energy-intensive computer equipment to earn bitcoin. Electricity accounts for a large portion of their operational costs.
BTIG analysts claimed the electrical cost to produce one bitcoin has dropped 40% since the end of last year, easing pressure on corporate profits.
Illustration of bitcoin
Blockchain.com statistics indicated that miners’ 30-day average cost-per-transaction has dropped to its lowest level since September, despite the network’s processing power and mining difficulty climbing consistently to new highs.
As bitcoin’s price fluctuates, miners can’t feel too comfortable.
“If we see bitcoin peak out and consolidate, the run-up in miners may do the same, we anticipate to see more volatility as we approach into summer,” said Delphi Digital’s chief of research, Kevin Kelly, who expects a favorable crypto environment until 2023 compared to last year.
Luxor’s Mellerud said many miners still struggle to pay off debt despite improving balance sheets.
“The bitcoin price surge has bought these firms time, but it would be harmful if it fell back down to $20,000,” he added.
Even though new mining rigs have decreased 69% since 2021, BTIG stated most firms are concentrating on debt reduction rather than buying new equipment.
CleanSpark (CLSK.O) used lowering costs to buy 45,000 new mining rigs, roughly doubling its processing capacity.
Power price spikes or bitcoin drops might cause a fresh cold spell. It’s sunny now.
Marcus Sotiriou, digital asset broker GlobalBlock’s analyst, said, “I don’t think we’re entirely out of the woods, but I think the worst is behind us” (BLOK.V).
Summary of today’s bitcoin and cryptocurrency news
In summary, Bitcoin has numerous points of view and predictions, some of which are optimistic and some of which are negative. Only time will tell which direction Bitcoin will go next.
Lastly, according to BTIG, most firms are focused on debt reduction rather than investing in new equipment, despite the fact that the expected cost of new mining rigs has plummeted by 69% since the end of 2021. A sharp surge in electricity prices or a sharp drop in bitcoin might herald a new cold spell. Yet for the time being, the sun is shining.