Researchers of the South Korean crypto exchange bithumb They identified seven factors that they believe will affect Bitcoin (BTC) and cryptocurrency prices in 2023 and have determined whether the bear market has been replaced by an extended uptrend.
Bithumb researchers claimed that the Bitcoin price could reach $42,000 in the next 12 months if certain events occur.
It was published in a document entitled Estimates, according to Asia Today.2023 Virtual Asset Market OutlookPublished by the Bithumb Institute for Economic Research.
The company gave each factor a four-star rating, with four stars denoting an event of utmost importance to the market.He also categorized events as bearish, unknown, neutral or bullish.
Four Star Bull Events
Bithumb has identified two potential bullish events that could push the price of BTC to $42,000.The first is the decision to be made in the coming days.Federal Reserve bank (FED) to loosen “austerity measures”.Second, Russia’s decision on whether to allow trading companies to use cryptocurrencies as a means of payment in cross-border transactions.
Observers expect the Fed to cut interest rates later this year – a move that many experts believe will spur investment in the crypto sector and trigger a protracted recovery for major crypto holdings.
Meanwhile, Russia was excluded from dollar trading transactions in most markets.However, despite some uncertainty at the level of the Central Bank, which is skeptical of cryptocurrencies, cryptocurrency trade deals could be an alternative for Moscow.
Three Star Bull Events
Bithumb researchers explain that two other events could have a significant impact on cryptocurrency prices.These include a possible relaxation of cryptocurrency tax rates in Japan, which could trigger an Asian-wide bull market.
Tokyo has stated that it will review tax rates on legal entities that issue and hold cryptocurrencies.
A measure to reduce the tax burden on individual investors may be more problematic, but opposition lawmakers have repeatedly called on the government to change its position.
Another country to watch closely is Brazil, where plans to give cryptocurrencies a greater legal footing could also stimulate weak Latin American markets.
An “unknown” factor
Bithumb researchers said it was unclear how the case between the two parties would turn out.Securities and Exchange Commission (SEC) and Ripple will affect the markets.However, this case was rated as a three-star event and showed that the court decision would affect prices in one way or another.
An important “neutral” event?
The first major upgrade of the Ethereum network “Shanghai” of the year is expected to take place in March.The hard fork will allow validators to withdraw their ether (ETH) assets they have put into staking to secure the network.While analysts at Bithum believe this will not push the market up or down, the event could have a stabilizing effect.
And maybe that’s why the team rated the hard fork as a three-star event.
a falling event
Exchange users seem likely to be refunded Mount Gox it will finally happen this year and March is shown as the most likely month.This essentially means that 140,000 BTC will be “released” from March onwards and payments will continue until the end of September.
“Caution is needed as it is difficult for creditors to predict when assets will be sold,” the researchers said.
This factor was classified as a two-star drop event.
Outlook for Bitcoin in 2023
Lee Mi Sun“More countries and institutions will be able to integrate virtual assets into their wallets this year if conditions are favorable and “clearer” crypto regulations are made, reportedly the head of the research team at the Bithumb Institute for Economic Research.
But he warned that the price outlook could be affected if unpredictable variables emerge.
Lee said these variables could include a drop in usage of the Bitcoin network due to “the emergence of new alternative assets.”
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