IncomeSharks, a platform known for crypto education, market analysis, and predictions, has tweeted that the highest price Bitcoin could reach in 2023 would be between $30,000 and $40,000. The platform expects the Bitcoin price to reverse the losses incurred due to the obstructive events of 2022, such as the Luna crash and the failure of the FTX exchange.
Most of the respondents under the tweet by IncomeSharks seem to agree with the projection, with one asking what could happen to altcoins when BTC slows down. To that question, IncomeSharks replied that altcoins would pick up pace as soon as the BTC surge relaxes.
Another follower who agrees with the projections added that after reaching the $30,000 to $40,000 region, Bitcoin will go into a sideways range until the next halving event in 2024.
The Luna crash in May 2022 is estimated to have wiped out up to $60 billion from the digital currency space. That loss resulted from a massive UST sell-off after its price dropped from $1 to $0.91. The liquidation saw UST holders exchange 90 cents UST for $1, causing the stablecoin to depeg. That led to an increase in Luna’s circulating supply.
The panic injected by the crash reverberated across the industry with many crypto exchanges delisting Luna and UST pairings. Almost all major cryptocurrencies suffered significant losses, including Bitcoin.
Several months later, while Bitcoin struggled to recover from the Luna Crash, FTX collapsed following reports of potential leverage and solvency concerns involving Alameda Research, a trading firm affiliated with FTX. The event shook an already fragile crypto market, leading to significant losses that saw the market valuation drop below $1 trillion.
Bitcoin fell below $16,000 and remained in that range until the resurgence in January 2023. Prices have continued to rally, and the global macroeconomic challenges appear to influence an influx of funds into the crypto market.
As of the time of writing, Bitcoin traded at $27,466, having bounced off support below $20,000 in the past week.
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Source: Cryptocurrency - investing.com
