The four-year market correction that involves consolidation (buying), an upswing, dispersion (selling), and a decline has typically coincided with Bitcoin bull markets. The accumulation phase of this operation is expected to start in 2023, however others predict it won’t start until 2024 at the earliest. Nevertheless, there is reason to suggest that prices will climb by mid-2023.
The authorities are on their way.
First of all, and importantly, Bitcoin has attracted the attention of a growing number of institutional players as the largest (by market size, at $300 billion) and perhaps most easily reachable cryptocurrency.
During the first half of 2022, 58 percent of corporate investors questioned by financial services firm Fidelity management reported purchasing cryptocurrencies. More than three-quarters (76%) of respondents also expressed interest in bitcoin investment. A total of 1,052 corporate fund professionals in the Americas, Europe, and Asia were polled by Fidelity. These corporate investors have significantly more purchasing power than the ordinary individual trader, and their expanding participation in the market may potentially push the value of Bitcoin upward.
Bank of New York Mellon, the earliest bank in the United States and the biggest custodian bank on the planet, recently announced that it will begin providing custodial solutions for Bitcoin in response to customer demand. The biggest asset management on the planet, BlackRock, recently announced a partnership with Coinbase to provide access to its Aladdin trading system for customers who already owned Bitcoin on Coinbase.
The resurgence of blue-chip enterprises and their investments
During the same period, Bitcoin adoption is starting to heat up across large IT corporations and financial organizations. Bitcoin’s detractors have been trying to discredit it as an investment opportunity for a long time on the grounds that it has limited practical use.
That’s changing, and it’s shifting fast. Parent company Alphabet publicly confirmed it will accept Bitcoin and many other cryptos as payment for Google Cloud, whereas Mastercard also announced intentions to cooperate with crypto business Paxos to assist conventional banks in offering trading activity and investment on their systems.
The Federal Reserve’s decision to slow the pace of inflation might boost Bitcoin.
In 2022, the Federal Reserve started rapidly raising bank rates to fight inflation. Numerous long-term speculative commodities, such as Bitcoin and technology shares, were brought to their knees as a result of the rate rises. After a series of strong rate rises that took interest rates from 0.25–0.5% in March to 3.75–4%, most market analysts believe the fed policymakers will need to reduce these rate increases at some time in the foreseeable term. Bitcoin and other speculative assets might see renewed interest from investors if the Federal Reserve eases off the gas and lets rates level out.
Follow the path of the puck.
If you invested in Bitcoin at the beginning of 2022, you probably lost a lot of money. Despite this, its price has remained more stable than may have been predicted, given the volatility that conventional financial markets plunged into, since it is a slightly earlier investment option that is still mostly a risky venture at this moment.
Future projections indicate that 2023 will be a watershed year for Bitcoin. Greater participation from major institutional investors, rising use by international software and financial organizations, and an even more hospitable monetary climate from the Fed could make it far stronger than 2022. Although Bitcoin remains a high-risk asset, we believe that even the most conservative investors would profit from holding some BTC in their holdings.