Bitcoin’s turbulent performance in 2022 hasn’t deterred big players from predicting a promising run for the asset in 2023. Bloomberg is one such platform with a bullish outlook on Bitcoin and presents notable reasons why the asset is poised to see rapid growth in the new year.
Bloomberg cites the global recession as a bullish propeller for Bitcoin
In its most recent cryptocurrency outlook, Bloomberg analysts go over the impact of the perceived global recession on Bitcoin and other digital currencies in the market.
“The rising potential for a severe global economic shutdown may be a top crypto performance factor in 2023. Our bias is that Bitcoin is most likely to come out ahead in most scenarios…” Bloomberg explains.
It is worth noting that many other notable voices share Bloomberg’s views in the cryptocurrency industry. As 2022 came to a close and predictions for the new year rolled in, many prominent traders and investors mirrored this bullish sentiment.
The founder of Altana Digital Currency Fund, Alistair Milne, is one such figure. Milne called $45,000 for Bitcoin, given that inflation favours the asset.
Pointing to the inverted yield curve, which shows long-term interest rates are less than short-term interest rates, being a possible indicator, the report says that economic growth will ebb and result in implications for all assets.
Bitcoin could return to $12,000 or go even lower to $10,000 as a result. This would mean that the asset, which trades at $17,353 at press time, could shed anywhere from $4,490 or $6,940 of its current price. Nonetheless, it is still bound to make an upward comeback, the report maintained.
BTCUSD Chart by TradingView
It was also noted that another case scenario that might play out differently from last year is the Federal Reserve and central banks being forced to start “easing back on deflationary forces from declining asset prices.”
If this becomes the case, Bitcoin could also follow another positive pathway.
“In this Fed pivot scenario, Bitcoin is poised to transition to a digital version of gold and perform like the metal and US treasury long bonds. A swift recovery in declining GDP and asset prices appear less likely.” Bloomberg conclusively asserts.