A summer recovery to be expected – As crypto winter continues to rule the markets, this advocate for Bitcoin (BTC) shares his predictions about the date of the next bull for cryptocurrencies. Some perspectives are optimistic, without being unrealistic.
The agenda of bulls subject to key factors
During a recent interview for Bankless Shows, the CEO of ShapeShaft, Erik Voorheesindicated that the next bull run for cryptocurrencies could occur in six months to three years. He believes that the next bull cycle could begin from mid-2023because by then enough time would have passed for people to start changing their minds and for the “speculative cycles” come back.
For Erik Voorhees, market dynamics will depend on a number of factors, including interest rate announced by the Federal Reserve (FED) as well as the evolution of the macroeconomic environment and the regulations.
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Bitcoin to $40,000 by summer…if the FED gives the green light
Erik Voorhees also shared his predictions for Bitcoin that would be able to rally back to $40,000 by summer, almost 2.5 times its current price. However, a change in the way the FED handles interest rate is a necessary condition to such a significant bullish rally.
The CEO of ShapeShaft is convinced that these rate changes can take place in early or mid-2023. Nevertheless, this optimistic outlook should be taken with a grain of salt, because if the FED has reduced the magnitude of the rate hike in Decemberfor the moment, it has not given convincing signals of a real pivot for this year.
These forecasts must also take into account the fact that theinflation in the United States is not not yet mastereddespite positive signs reflected in the release of the latest Consumer Price Index (CPI) data.
But the FED could very well be more hawkish again if the next statistics show that this drop was only cyclical and that, structurally, the CPI continues to rise.
A cyclical Bitcoin to confirm a rise, but a rhythm to be discussed
Given these uncertainties about the future decisions of the US Federal Reserve, is Bitcoin at $40,000 by summer impossible? From a technical point of view, Bitcoin could go up to at least around $55,000 this year, referring to historical data and assuming a four-year cycle about the evolution of its price.
But while $40,000 remains possible in theory, Bitcoin’s rate of ascent may be slower. The cryptocurrency could thus miss its rendezvous at $ 40,000 in the summer, but it could again touch this level during the fall or even next winter.
The reality of the crypto markets for this year can obviously come close to these forecasts or move away from them. Erik Voorhees bets Bitcoin at $40,000 by summer. But in reality, cryptocurrency remains stuck currently under $17,000and a dead calm reigns on the markets.
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