Bitcoin had a very eventful year in 2022, with its price reaching an all-time high of over $80,000 in April before experiencing a significant drop in May. The cryptocurrency market went through a volatile period, with several factors affecting the price of Bitcoin, such as regulatory changes, environmental concerns related to mining, and market sentiment. As such, it is no wonder that traders and investors are wondering – will Bitcoin rise in 2023?
Current State of Bitcoin
Research by CoinDCX has revealed that Bitcoin has surpassed the $30,000 level for the first time since June 2022. Specifically in the last 30 days, Bitcoin has seen significant gains of almost 50%, reaching its highest level in 10 months on 11th April 2023.
The reasons for this recent surge in price are likely due to various factors such as positive news and developments within the cryptocurrency industry, increased institutional adoption and investment, and overall market optimism. However, as with any cryptocurrency investment, knowing the inherent volatility and risks involved in trading Bitcoin is essential.
Why Is Everyone Eyeing Bitcoin?
Bitcoin is a digital currency created in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto. It is based on a decentralized ledger technology called blockchain, which allows for secure and transparent transactions without intermediaries such as banks or payment processors.
One of the main properties of Bitcoin is its limited supply, with only 21 million bitcoins that can ever be created. This scarcity has contributed to its value proposition, with many investors seeing it as a hedge against inflation and a store of value similar to gold. Additionally, Bitcoin transactions are irreversible and pseudonymous, providing users privacy and anonymity.
Bitcoin’s value is often used as a benchmark for the performance of other cryptocurrencies. Its popularity and widespread adoption have led to a vibrant ecosystem of cryptocurrency exchanges, wallets, and related services. At the time of this writing, Bitcoin traded at $30,614, which is up by almost 9.56%.
What Experts Are Saying for Bitcoin in 2023 – Bullish & Bearish Views
Here are some insights and opinions from notable figures in the cryptocurrency on whether we will see Bitcoin rise in 2023.
- Tim Draper, a venture capitalist, predicted that bitcoin would reach $250,000 by 2023. Draper has been a long-time supporter of bitcoin and invested heavily in cryptocurrency.
- Max Keiser, a financial journalist and bitcoin enthusiast, has predicted that bitcoin will hit $400,000 by 2023. Keiser believes that the current monetary policies of central banks will drive more investors to cryptocurrencies.
- Anthony Pompliano, a well-known bitcoin advocate and investor, believes that bitcoin could reach $500,000 by 2024. Pompliano cites the limited supply of bitcoin and growing institutional adoption as critical drivers of its value.
- Nouriel Roubini, an economist who famously predicted the 2008 financial crisis, has been a vocal critic of bitcoin. Roubini believes the cryptocurrency is a speculative bubble and its value will eventually drop to zero.
- Warren Buffett, the billionaire investor, has called bitcoin a “mirage” and a “gambling device.” Buffett has expressed skepticism about the long-term value of cryptocurrencies and prefers to invest in traditional stocks and companies.
- Kenneth Rogoff, a Harvard economist and former chief economist at the International Monetary Fund has warned that governments may eventually crack down on cryptocurrencies to prevent money laundering and tax evasion. Rogoff believes this could lead to a sharp drop in the value of bitcoin and other cryptocurrencies.
Advice for Traders and Investors
Regardless of bullish or bearish opinions on the market, BTC traders must stay informed and use technical analysis to make informed trading decisions. Practice risk management to protect your capital and diversify your portfolio to reduce risk, regardless of the market sentiment or if the price of Bitcoin rises or falls.
For BTC traders:
- Stay informed: Keep yourself updated with the latest news and trends in the cryptocurrency market. This will help you make more informed trading decisions.
- Use technical analysis: BTC is a highly volatile asset, and technical analysis can help you identify trends and patterns in price movements.
- Set realistic goals: Setting realistic goals and expectations for your trading activities is essential. Don’t expect to get rich overnight; only risk what you can afford to lose.
- Diversify your portfolio: Don’t put all your eggs in one basket. Consider investing in various cryptocurrencies and other assets to reduce your risk.
- Practice risk management: Use stop-loss orders and other risk management tools to protect your capital and limit losses.
In addition to the above, halal investors may consider the following:
- Ensure compliance with Islamic principles: BTC and other cryptocurrencies are a relatively new asset class, and it’s crucial to ensure that your investment activities comply with Islamic regulations, such as avoiding interest-based protocols and investing in ethical businesses.
- Choose a halal investment platform: Look for investment platforms certified by Shariah-compliant authorities or offering halal investment products.
- Consider investing in mining companies: Investing in companies that mine cryptocurrencies can be a halal way to participate in the cryptocurrency market, as long as the companies operate in accordance with Islamic principles.
- Avoid speculative investments: Avoid investing in cryptocurrencies or other assets based on speculation or gambling, as these are considered haram.
- Seek guidance from experts: Consult with knowledgeable Islamic finance experts or scholars to ensure that your investment activities comply with Islamic principles.
Is Bitcoin Halal?
Bitcoin’s permissibility under Islamic law, or whether it is halal, is a subject of debate among Islamic scholars and economists. Some argue that Bitcoin is not halal because a physical asset does not back it, and its value is speculative. However, others say that Bitcoin can be halal if used for legitimate purposes and does not violate Islamic principles such as riba (interest) or gharar (uncertainty).
The MRHB Shariah Scholars have analyzed crypto projects and tokens to determine whether they are halal or not. The newly screened halal crypto tokens are then added to the Sahal Wallet for ease of transaction. This ultimately removes any doubts regarding interest-based cryptocurrency thus enabling faith-based communities to confidently participate in decentralized finance.