The cryptocurrency industry, development and prices have been hit in the last two years despite its increasingly marked growth and adoption in global society. During these first two months of 2023 we have seen interesting movements in the price of Bitcoin, the crypto asset with the largest market capitalization, which is trading at the USD 24,000 level, a price that is quite attractive considering the levels at which that it had been moving in the past months, and that despite showing green numbers, it does not leave full signs of confidence in the short term.
Anibal Garrido, cryptocurrency advisor, He spoke to the Cointelegraph en Español team about the current Bitcoin price, noting the fact that he wasn’t too sure if the Bitcoin price would break all-time highs for the next post-halving bull run.
According to Garrido, the price prospects for this year must be analyzed according to the price cycles for the crypto market and especially Bitcoin, which, as he explained, averages approximately three to four years per cycle, the last being “bull run” in November 2021.
“The closest prediction is for the year 2024, which additionally, if we add the halving issue, we are looking for new numbers. I am not very sure that we will break all-time highs (I am talking about 69k USD), but I am sure that it can generate very interesting profits for those who see Bitcoin as an investment vehicle, in addition to this there is portfolio diversification and good management risky”he pointed.
In this sense, He explained that the bull run that is currently being seen with the price of Bitcoin is generated by external and internal factors of the crypto space. Among the external ones, the improvement in the inflation numbers stands out, the brake on the rise of the dollar index, and the recovery of the euro:
“Inflation after having a permanent increase by the Federal Reserve in the numbers, begins to decrease. It is a timid recovery, however, that encourages investors to think that the economy is going to improve, look for where they are going to invest and one of those vehicles could be Bitcoin; likewise the rise of the DX/DY dollar index culminated in its ride to the sky, the euro is also recovering even after losing its peg to the dollar”said.
“So, when the dollar weakens, investors also look for other ways to protect their investments and one of them is Bitcoin”added Garrido.
On the other hand, Regarding the internal aspect, Garrido described it as more complex, since, according to him, if Bitcoin is observed, in a macro scenario, within the price graph on a logarithmic scale, the trend continues to be upward despite all these years and now in recent times, one way or another, Bitcoin has also been showing signs of recovery.
“Definitely, the behavior of Bitcoin always generates a profit in the long term, and I think this may be a sign that investors are turning to see after this Tsunami that occurred with the global economy and that has not stopped due to COVID- 19”he pointed.
“However, I think that the tsunami with the whole issue of Arrow Capital, Genesis, Celsius, FTX, Terra, is going to tend to heal and the recovery of market confidence is obviously evidenced through Bitcoin, but yes, I want to Being conservative, this could be a trap for investors and so I think that the best way to always enter the market for investment purposes has to be evaluating the short, medium and long term scenarios”he added.
Do CBDCs pose a threat to Bitcoin?
In reference to this point, Garrido said no. However, he explained that the issue of regulation could probably be toughened up.
“In the case of Bitcoin, because it is a decentralized currency, it is not at all interested in whether there is a CBDC or not, I believe that it is quite the opposite, when people begin to discover a new form of 100% electronic money and have the ability to Being able to look around and see a new type of money like the case of Bitcoin, I think that it could rather be pushed or wrapped up, but I don’t think it will have a negative impact on Bitcoin”answered.
Insights from the crypto mining industry
Lastly, about Bitcoin mining, Garrido mentioned that the prospects were always the same for an industry characterized by its speed and resistance.
Likewise, he explained that the investment that a person makes when wanting to mine and be part of the Bitcoin protocol, contributing computing power and giving power to the network, is a vision that from the investment tends to be for the long term.
“From this perspective, only people who have a structured vision of how to mine will survive, who have a development plan for mining facilities that precisely guards against fluctuations in the price of Bitcoin and the consequent and permanent increase in mining difficulty that makes each time a miner earn less”he mentioned.
“The fact of knowing that Bitcoin is a store of value and knowing that this investment will always pay off in the long term, makes me think that the strongest will survive and people who are not prepared and those who see mining as a mechanism to become a quick millionaire, when it is really the opposite, I believe that mining is one of the most complex ways to make easy money”he concluded.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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