7 Factors that Could Send Bitcoin to $42k in 2023: Bithumb Report
• Researchers at the South Korean crypto exchange Bithumb have named seven factors they believe will affect bitcoin (BTC) and crypto prices in 2023.
• These factors include the Federal Reserve’s forthcoming decision to ease austerity measures and whether or not Russia will green-light its trading companies to use cryptoassets as a means of settlement in cross-border deals.
• Bithumb predicted that these events could help spur BTC prices toward $42k in the next 12 months.
Researchers at the South Korean crypto exchange Bithumb have made predictions regarding the potential impact of seven factors on the bitcoin (BTC) and crypto markets in 2023. The exchange’s researchers believe that these factors could determine whether the bear market will give way to bullish forces for a sustained period.
The predictions were published in a report titled 2023 Virtual Asset Market Outlook, issued by the Bithumb Economic Research Institute. According to the report, bitcoin prices could rise to the $42,000 mark in the next 12 months – provided certain events come to pass. The report graded each factor with a star rating out of four, with four stars denoting an event with maximum significance on the market. It also categorized the events as Bearish, Unknown, Neutral, or Bullish.
The four-star bull events identified by the Bithumb researchers that could help spur BTC prices toward the $42k mark include the Federal Reserve’s forthcoming decision to ease “austerity measures” and whether or not Russia will green-light its trading companies to use cryptoassets as a means of settlement in cross-border deals.
The Federal Reserve is widely expected to cut interest rates sometime this year – a move that many experts claim will encourage investment in crypto, and spark a prolonged recovery for major tokens. Meanwhile, Russia has been frozen out of dollar-powered trading in most markets. But crypto-powered trade deals could provide an alternative for Moscow – despite some uncertainty from the nation’s crypto-skeptic Central Bank.
In addition to the four-star bull events, two three-star events were identified by the Bithumb researchers that could also have a significant impact on crypto prices. They include whether or not the United States will recognize Bitcoin as a legal currency and whether or not large-scale institutional investors will enter the crypto space.
The US has yet to recognize Bitcoin as a legal currency, but there are signs that the government may be warming to the idea. If it does so, it could provide a major boost to the crypto market. Meanwhile, the potential entrance of large-scale institutional investors into the crypto space could also prove to be a catalyst for a sustained bull run.
Overall, the report from Bithumb’s Economic Research Institute provides a useful insight into the potential factors that could shape the crypto markets in 2023. If the seven events identified by the researchers come to pass, then we could see a dramatic rise in crypto prices over the next 12 months.