The Bitcoin price is predicted to continue its correction throughout 2023 amid a number of sentiments such as the risk of recession and the easing of the global inflation rate. Traderindo.com Founder Wahyu Laksono explained that the price of Bitcoin has indeed been in a corrective trend throughout the past year. This is in line with the tightening of monetary policy by the Fed which has also triggered a decline in the price of crypto assets and digital technology stocks. “Bitcoin is indeed going down, but not because it is a crypto asset. All assets have indeed weakened against the US dollar since the Fed’s interest rate hike,” Wahyu explained when contacted,
Wahyu explained that starting to ease inflation this year could have a positive impact on the movement of crypto assets such as Bitcoin. However, the potential for Bitcoin to weaken in 2023 is still quite open given the threat of a global recession. He continued that both scenarios have the potential to trigger a decline in the value of the US dollar. If a recession occurs, the value of the US dollar will strengthen due to its safe haven nature. On the other hand, this will force the Fed to be more realistic in saving the economy and stock market by cutting interest rates and stimulating quantitative easing (QE). Meanwhile, if inflation subsides, the Fed will tend not to be aggressive and issue a stimulus in the form of quantitative easing.
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“So, whatever the condition, the US dollar will eventually weaken. The question is when this decline will occur, “he continued. Meanwhile, Wahyu continued that fundamentally Bitcoin still has value in the long term. This can be seen from the recognition from global institutions and world exchanges for this asset to make it a financial asset. Wahyu predicts that the price of Bitcoin will still consolidate this year in the range of US$18,000 – US$25,000. The Bitcoin price also has the potential to be corrected to around US$10,000 before returning to the consolidation level.
Meanwhile, if the Fed eases monetary policy and provides quantitative easing stimulus, Bitcoin prices could rebound and test the US$50,000 – US$60,000 range. Separately, the Chairperson of the Indonesian Crypto Asset Traders Association (Aspakrindo) Teguh Kurniawan Hermanda said the downward trend in Bitcoin prices was part of an annual trend. Historically, the price of Bitcoin will experience a deep correction before rising again. “Historically the price of Bitcoin will be higher than the previous year, for example the price in 2010 was higher than in 2009, in early 2022 it was also higher than throughout 2021, and so on,” explained Manda. However, Manda said that this trend would not necessarily continue in 2023. This is in line with the many negative sentiments that overshadow the price movement of this crypto asset. Manda explained that crypto winter will continue throughout 2023 along with the potential for a global recession. This condition makes investors withdraw their funds from risky assets such as
Bitcoin and choose to hold cash. This is also coupled with the collapse of investor confidence in this asset class. According to him, cases such as the FTX bankruptcy and Three Arrows Capital’s default have further eroded investor confidence in crypto assets such as Bitcoin. “Investor confidence certainly needs time to recover. The weakening of Bitcoin we have seen so far has not reached its peak, “continued Manda. Meanwhile, Bitcoin has entered its 14th year of presence since its introduction on January 3, 2009. The crypto assets worked on by Satoshi Nakamoto are now increasingly popular among the public and investors, including in Indonesia. Quoted from the Investopedia page on Thursday. Nakamoto mined the first block of Bitcoin on January 3, 2009. Nakamoto received 50 Bitcoin as a reward for the first block which is now known as the Genesis block. Meanwhile, this prize cannot be spent because Satoshi does not send transactions from the Genesis block to the global transaction database. Nakamoto also did not explain why he did not use the gift.
