Despite Losing 60% of its Value this Year, Experts Say Bitcoin Could Rebound Big in 2023
Per the financial magazine Barron’s, Bitcoin is having a really rough year.
To be exact, 2022 has been the worst year for the cryptocurrency since 2010, the year after it was first created. This year saw its value plummet by almost 60%.
This has many saying that the bottom has finally fallen out on cryptocurrency and its time has passed. However, other analysts believe that sharp decline is just a harbinger of an even bigger rise to prominence.
For one, the downturn in investments is expected to start easing in the next year pretty much across the board. And it is Bitcoin that sits poised as one of the predicted frontrunners to have the biggest comeback, with a projection of 38%.
Compare that to the stock market and the projection there is only 20%.
Another factor in Bitcoin’s favor is that it is an investment known for quick swings of the pendulum, seeing major gains and losses far quicker than stocks. Bitcoin currently has an expected volatility of around 84%, which is likely part of what led to its recent decline. But that combustible nature means it can also suddenly shoot back up again.
Fred Hubler, CEO and Chief Wealth Strategist for Creative Capital Wealth Management Group which offers retainer-based advice and access to accredited investments for clients in 27 states also believes crypto isn’t going anywhere.
“When you look at the unsustainable debts of governments worldwide,” according to Hubler, “some investors are concerned about the “debt bubble” and a form of currency that is not tied to the dollar would be valuable.”
“As our dollar gets stronger and it negatively impacts other countries,” Hubler continues, “they will look for non-dollar alternatives and crypto would be a strong consideration. For our clients, it is still a high risk/ high potential return, so we don’t advocate any significant exposure, but for risk capital, we don’t tell clients no.”
Lastly, it is looking like more regulation could soon be made surrounding Bitcoin, which has investors feeling positive. The belief is that more regulation will help assuage those who are reluctant to invest and will wind up drawing more people in overall.
Things might look bleak currently, but it should not take long to see whether all of these expert predictions start to pan out and if Bitcoin will be able to turn the corner.
For more on what financial experts are saying about Bitcoin’s future, read the article from Barron’s.
Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of Creative Capital Wealth Management Group‘s Wealth Strategists.
It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.
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