If you ask the pseudonymous analyst Credible Crypto, there is a chance that Bitcoin will reach a new all-time high this year. He even predicts that Bitcoin could take a 150 percent profit from its current price. Credible Crypto mainly bases this on the past and more specifically on a period from 2020, in which Bitcoin performed the same trick.
Bitcoin in 2020
In 2020, it took about six months for Bitcoin to surge 500 percent from $10,000 and hit a new all-time high. “Don’t tell me it can’t happen, if it literally has already happened. See you at the new all-time high, probably sometime this year,” said the optimistic Credible Crypto.
We’ll all just have to see it eventually, of course. The year 2020 was, especially from a macroeconomic point of view, a completely different period than now. At the time, central banks were literally shooting money around to prevent the economy from collapsing due to COVID-19.
At the moment, however, the opposite situation is taking place, in which central banks are actually trying to pull money (liquidity) out of the system in order to bring inflation down. That doesn’t necessarily work in Bitcoin’s favor, making an all-time high in 2023 seem unlikely from that perspective.
Bitcoin has done crazier things
Bitcoin has done crazier things in the past, but it seems that analysts like Credible Crypto want to score with a good story. Bullish statements like “a new all-time high in a few months,” of course, score well.
They do this mainly to gain followers, in the hope that they will forget these kinds of statements when the predictions do not come true. A bit similar to PlanB and its Stock-to-Flow model, where confidence has also disappeared a bit.
Of course, we can never completely rule out Bitcoin hitting another all-time high in 2023, but the odds are not in favor of the digital currency for a while. Perhaps the period after the halving of 2024 is more likely as far as a new all-time high is concerned.