A significant portion of current cryptocurrency investors either took a break after the November 2022 crash or had never engaged with cryptocurrency before. The relatively minor decline in Bitcoin prices from $15,500 to $73,777 causing such outcry supports this assumption. But what do the experts say?
How Much Will Bitcoin Be Worth?
Cryptocurrency investors are familiar with figures like Anthony Pompliano who recently answered burning questions on CNBC Squawk Box. Pompliano believes that Bitcoin will exceed $100,000 within 12 to 18 months. This prediction is echoed by many experts based on historical data, noting that past peak prices of Bitcoin occurred 12-18 months after a halving event.
The founder of investment firm Pomp Investments stated;
“I think the downside is quite quiet at this point. Still, it’s not possible to say for sure. External events can always occur. However, I don’t think it will drop below $50,000 at any point. I believe we have crossed that Rubicon.
On the upside, I think we will surpass $100,000 in the next 12-18 months, maybe reaching between $150,000 to $200,000. But we will rise from here. People should not expect an explosive 1000% movement for the rest of the bull market.”
Why Did Cryptocurrencies Fall?
Geopolitical tension caused rapid losses in Bitcoin prices. BTC has not even reclaimed $64,000 since its recent drop. Anthony Pompliano has a different theory regarding the recent declines.
“I think three things caused this price drop. Firstly, whenever there’s a moment of fear, everyone panics and what do they do, they still buy dollars, and hence some people are selling.
When all the news hit Twitter and social sensitivity changed very quickly, you saw many tweets about Iran and Israel, rockets, and drones etc. A rapid sell-off occurred. It’s hard to believe that people read Twitter and immediately go to their computers to hit the sell button. Therefore, there must be some algorithmic trading going on.”
He might be wrong as investors still remember the market reactions following Russia’s “special operation” announcement in early 2022, which could have prompted quick sales in the recent event.