BitMEX Founder Reveals Bitcoin Predictions for 2023: BTC Price Heading Towards This Level

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The dark crypto winter of 2023 is easing, as the key assets are turning bearish.

After the king cryptocurrency’s sudden 30% surge, BitMEX CEO Arthur Hayes is detailing the most possible futures for Bitcoin (BTC).

According to a new post by Hayes on Medium, the future direction of Bitcoin (BTC) remains uncertain until it becomes clear what is fueling the recent price increase.

Two Potential Catalyst

If the spike is a “natural” rebound off recent lows, Hayes expects Bitcoin to trade sideways at a higher price level until financial market circumstances improve. Here are the possible scenarios suggested by him. 

Scenario 1: 

As per his first rally catalyst scenario, Bitcoin is merely rebounding from sub-$16,000 lows. If this recovery is really a natural bounce off local lows, he expects Bitcoin to establish a new plateau and drift sideways until USD liquidity improves.

However, he also believes that Bitcoin’s price spike is due to investors anticipating a Fed turnaround on raising interest rates. He further added Bitcoin will climb if the Fed pivots, but it will fall if it doesn’t.

Scenario 2: 

According to his rally catalyst scenario 2, Bitcoin is rallying because the market is anticipating Fed USD money printing. If so, two things may occur:

• Scenario 2A: Bitcoin will likely fall to historical lows if the Fed does not flip or many Fed governors downplay the possibility of a turnaround even after “strong” CPI numbers.
• Scenario 2B: If the Fed does make a turn, Bitcoin might keep rising, and this rise could herald the beginning of a sustained bull market.

What’s The Preferrable Scenario? 

If his first scenario pans out, he predicts that Bitcoin will trade sideways at its latest recent high. The flagship cryptocurrency will thereafter likely reach the $30,000-$40,000 area as speculators, anticipating a Fed pivot, drive the price up.

He also predicts that once a “substantial amount of USD has been poured into the crypto capital markets,” Bitcoin’s price will surge past its all-time high. This would occur after the Fed really pivots.

However, Hayes expects Bitcoin to drop to $15,800 or below if his “disastrous” scenario 2A comes to pass.

I know the Fed will act to print money and prevent another financial crisis, which will mark the local bottom of all risky assets, therefore it doesn’t matter what level the down draft reaches.

And then I get a situation like March 2020, where I have to reverse the truck and buy cryptocurrency while holding a shovel in each hand.

The Bottom Line

However, still, a recession may occur this year. The Fed raised interest rates quickly to control inflation. Rising rates reduce demand and risk a recession.

Traditional stocks may fall. As investors abandon riskier assets, a recession is likely to lower bitcoin prices, as the crypto market has been following the stock market.