Matthew Sigel, one of the executives of global investment giant VanEck, bitcoin (BTC) predicts sharp fluctuations in price.
Starting his forecast with a bearish forecast for Bitcoin, Sigel warned that the price could fall to the $10,000-12,000 range in the first quarter next year.
Sigel expects Bitcoin miners to be making losses now, triggering a collapse as a result of bankruptcy.
“Bitcoin will reach crypto winter lows as miners go bankrupt. It is possible that this will happen in the first quarter of 2023. The levels I expect are between $10,000-12,000.
The MVIS Global Digital Assets Mining Index median market cap is currently just $180 million. Almost all components are cash-burning and are trading well below book value.
Mining is largely unprofitable due to the recent energy cost and low Bitcoin price. We anticipate that many miners will restructure or merge.”
The MVIS Global Digital Assets Mining Index tracks the performance of firms that generate at least half of their revenue from digital asset mining or activities related to the cryptomining ecosystem.
Matthew Sigel also expects low inflation to trigger loosening of monetary and fiscal policies. According to the executive, Bitcoin has the potential to rise to $30,000 starting next July.
“Meanwhile, if our recession expectations come true, the Federal Reserve will likely pause raising interest rates amid softening inflation as money printing and government budget deficits persist.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.