According to a note from Barry Bannister of Stifel, Bitcoin (BTC) could drop 76 percent to $10,000 by 2023 as it faces three macro headwinds that have an impact on its price. As Kriptokoin.com, we are citing the factors that Bannister suggests for a decline…
$10,000 prediction for Bitcoin price: Here are the reasons
Bannister, global money supply, 10-Year US Treasury yield and Bitcoin price He emphasized the equity risk premium of the S&P 500, which had an impact on According to Bannister, the tightening and a reduction in its balance sheet planned by the Federal Reserve in the form of interest rate increases could have a negative impact on the Bitcoin price. Here are the three macro factors Bannister follows to measure BTC, as follows:
- Bitcoin as a function of the global money supply: According to Bannister, both the S&P 500 and Bitcoin are driven by the conversion of global currency to dollars. BTC is just moving more… If the dollar strengthens, global M2 money growth will slow, which could tighten US financial conditions. If US financial conditions tighten, Bannister said speculative assets like BTC will fall significantly.
- Bitcoin as a function of 10-year real return, gold price, and oil price: According to Bannister if 10-year real (post-inflation) TIPS US If the Treasury yield rises due to the Fed’s tapering… it will constrain Bitcoin upwards. However, if it drops gold, that will put pressure on Bitcoin. Bannister said, “Bitcoin could drop to $10,000 by 2023 if the ratio of gold and BTC drops, i.e. if the Fed tightens.” said.
- Bitcoin as a function of how far the Fed can go before it breaks stocks: Bannister says, “We believe the 10-year real return will not increase by more than 80 basis points in 2022, the first year of the 2-year Fed tightening cycle, but more then the S&P 500 (and BTC) could deteriorate in 2023 as the Fed continues.” He notes that BTC likes a lower equity risk premium, so it is worth watching to see if the Fed exit increases the equity risk premium or lowers the equity risk premium.
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