The emergence of Bitcoin and other digital currencies has spurred a number of major players into the field. For example, Warren Buffett, who once characterized cryptocurrencies as “rat poison squared” purchased NuBank, a digital “neobank” engaged in the industry. Lloyd Blankfein, former chairman of Goldman Sachs, has joined the ranks of investors in the space. Jack Dorsey, former CEO of Twitter, has also resigned from his role to lead a new digital currency company called Block.
Despite the current downtrend, Bitcoin enthusiasts remain hopeful that the cryptocurrency will soon make a comeback. According to some price predictions, the value of Bitcoin will reach $100k by 2022. But as we see from the graph, the cryptocurrency will only reach this level in 2023 if it manages to break through its resistance level. Meanwhile, some experts claim that the halving of the cryptocurrency could be a defining moment for growth.
If Bitcoin continues to grow, the price will continue to rise. It is likely to hit an all-time high in 2023. But if the price falls again, it is likely to go down again. The question now becomes: “Will Bitcoins still be the number one cryptocurrency in 2023?”
Bannister’s analysis of the three macro-economic variables that affect bitcoin’s price predicts that the price of the digital currency will continue to rise. The central bank’s plan to tighten monetary policy could have a negative impact on bitcoin prices. Meanwhile, the Fed’s plan to normalize interest rates will also affect bitcoin’s price. But what will happen to the price of gold?