Matthew Sigel, the head of digital assets research at global investment behemoth VanEck, has recently predicted notable volatility in the price of Bitcoin (BTC) over the coming months.
In a blog post on the official website of the company, Sigel said Bitcoin (BTC), the largest cryptocurrency by market capitalization, could fall to either $10,000 or $12,000 price region in the first quarter of 2023.
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As stated by Sigel, Bitcoin miners are currently unprofitable, which is resulting in bankruptcies that are capable of initiating the next BTC price crash.
Matthew Sigel noted:
“Bitcoin will test $10,000 – $12,000 in Q1 amid a wave of miner bankruptcies, which will mark the low point of the crypto winter.
“The MVIS Global Digital Assets Mining Index median market cap is now only $180 million, with nearly all constituents burning cash and trading well below book value.
“With Bitcoin mining largely unprofitable given recent higher electricity prices and lower Bitcoin prices, we predict that many miners will restructure or merge.”
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The MVIS Global Digital Assets Mining Index tracks the performance of firms generating at least half their revenues from mining digital assets or activities related to the crypto-mining ecosystem.
Turning to a bullish forecast, VanEck’s head of digital assets research says that Bitcoin could rally to $30,000 from July next year as lower inflation triggers the easing of monetary and fiscal policies.
“Meanwhile, should our recession expectations materialize, the Federal Reserve would likely pause raising rates amidst softening inflation, while money printing and government budget deficits continue.
Merely a lack of bad crypto-specific news, under the above scenario, could cause the price of Bitcoin to climb a wall of worry back to $30,000 again.”
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