What is the Future of Bitcoin?

If there is one consistency about Bitcoin it is this: it will remain inconsistent. Since entering the scene back in 2010, anyone who has followed Bitcoin has seen meteoric rises, epic falls, and everything in between.

Check any Bitcoin live chart over the years and you will see some pretty major variances. It has led to major success for some and huge losses for others. But what does the future of this cryptocurrency hold?

A Rough Year

The last year or so has been a tough ride for Bitcoin. Though it has consistently remained the largest cryptocurrency in the world, Bitcoin suffered a precipitous fall in 2022. As a matter of fact, it lost nearly 65% of its total market value by the end of 2022. To those who have been in it from the beginning, it is an alarming trend.

There have been some other epic crashes that have impacted Bitcoin’s trajectory. FTX is perhaps the biggest instance of a major exchange crashing, going from the next big thing to out of business seemingly overnight. While that might not be a concern for Bitcoin, that does not mean that it is impervious to tough times.

Will Bitcoin Rise Again?

Inflation has continued to be an issue across the board and it is having an impact on the cryptocurrency realm as well. Even after leveling out early in 2023, Bitcoin has seen a drop below the benchmark $30,000 level that it has been shooting for in recent years. Granted, that number is still above $29,000 but it isn’t a trend in the right direction.

That said, Bitcoin has been under pressure before and rebounded valiantly. Bitcoin has managed to rise above the $30,000 benchmark a few times since then, but it has given retail investors pause about becoming bullish on Bitcoin again in the near future. The most successful investors know to take a step back and see what unfolds before getting involved again.

Bitcoin Whales

Part of the effort to create a long-term bullish driver for Bitcoin has been to halve Bitcoins. These events directly relate to squeezes in supply as well as its deflationary tendency. Halving helps to drive BTC price up, at least in the short term. Since it can’t be printed by a government or central bank, its limited nature keeps Bitcoin from bottoming out.

Bitcoin Whales can also influence trends with the cryptocurrency. The largest Bitcoin whales wind up holding anywhere from 1,000 to 10,000 BTC in their exchange wallets. It is usually a good sign of recovery when investors begin hoarding Bitcoin again, though nothing is certain.

A New High?

At its peak, Bitcoin managed to get close to $69,000 per coin. Though things have obviously fallen quite a bit since then, there is hope that another massive upswing could be in Bitcoin’s future. There are some with a very optimistic outlook on Bitcoin, predicting another major push that tests the all-time high and even bests it. There was speculation that it could happen this year, though it is looking less and less likely.

Bitcoin has high hopes because of a reduction in aggressive interest rate hikes. If anything, this year has been something of a good year for those who consider it to be a “digital gold” investment. Having a good bit of Bitcoin in times of chaos and uncertainty can provide clarity when things become murky. If Bitcoin manages a spike in the near future, particularly before the end of the year, it will only unlock questions about where the cryptocurrency will be in two, three, and five years.

Also check: The BitGPT app uses AI to help cryptocurrency traders