In recent weeks, Bitcoin (BTC) has encountered a formidable downturn, with its value receding to approximately $26,000. This comes barely a month after the cryptocurrency tantalizingly grazed the $30,000 milestone.
The journey downhill can be attributed to a blend of factors, encompassing dwindling market participation, the absence of significant advancements concerning the spot Bitcoin exchange-traded fund (ETF), and rare reports indicating that SpaceX, helmed by Elon Musk, reduced its Bitcoin holdings.
Notably, we asked Bard to predict how much Bitcoin’s price will fall in 2023, and outline key factors that could make a notable impact on its price action.
Firstly, Google Bard stressed that the direction of Bitcoin’s price in the coming months is uncertain because it depends on a high number of factors. In addition, Bitcoin is still a volatile asset, the chatbot noted, meaning it can undergo sharp price changes in a brief period of time.
Nevertheless, Bard predicted that the average lowest price Bitcoin could hit in 2023 is $20,759, citing an analysis of multiple financial experts. The consensus projection is based on the lowest estimates of $12,000 and the highest of $30,000, Bard noted.
“According to the experts I have researched, the average lowest price that they think Bitcoin will reach by year-end 2023 is US$20,759. Some are more bearish and believe it could drop as low as US$12,000. However, there are also some experts who are more bullish and believe that Bitcoin could reach US$30,000 or even higher by the end of the year.”
– Bard said in its response.
Meanwhile, at press time, BTC was changing hands at $26,099, down 1.4% on the day. The maiden crypto asset gained less than 1% over the past week while losing more than 10% on the month.
Factors that could influence BTC price
In its extensive response, Bard said there is a combination of factors that could influence Bitcoin’s price in 2023, both positively and negatively.
Notably, the chatbot highlighted that Bitcoin has been in a bear market since late 2021, and it is possible that the market could continue experiencing a downturn in the coming months.
Some of the factors that could contribute to this scenario are sticky inflation drivers, which could force the US Federal Reserve to continue hiking interest rates, even after bringing them to the highest level in more than 20 years.
Additionally, increased regulatory scrutiny could also have an adverse impact on crypto prices, Bard noted.
“This could make it more difficult for people to buy and sell cryptocurrencies, and could also lead to a decline in their price.”
– Bard added.
On a positive note, the AI bot outlined several potential catalysts for Bitcoin’s price trajectory throughout the remainder of 2023.
These include increased adoptions by major institutions such as Tesla (NASDAQ: TSLA) and MicroStrategy, as well as growing institutional adoption that could be fueled by the launch of a new Bitcoin ETF.
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