The first in a series of Bitcoin UK price 2023 predictions, pulled from opinions across the internet - not intended as financial advice, but to consider or dismiss - when you do your own analysis and research.
Predicting the future price of Bitcoin (BTC) is a challenging task due to its inherent volatility. Currently valued at £21,701, BTC was trading at nearly £50,000 in November 2021.
To forecast Bitcoin prices, we must consider four key factors: supply, demand, competition, and sentiment. Each of these elements plays a crucial role in shaping the future trajectory of BTC prices. Additionally, expert opinions and external pressures further contribute to the complexity of predicting Bitcoin's future.
One essential aspect to consider is the limited supply of Bitcoin. With a maximum cap of 21,000,000 coins, the scarcity of BTC contributes to its potential value. Currently, over 19,000,000 BTC have been minted, leaving roughly 2,000,000 coins yet to be mined. However, the rate at which new Bitcoins are minted slows over time due to the halving mechanism.
Bitcoin halving occurs approximately every four years, reducing the reward given to miners for adding blocks to the blockchain. As of now, the reward stands at 6.25BTC per block and is expected to decrease further to 3.125BTC by the end of 2024. This gradual reduction in rewards creates a supply constraint, potentially leading to price increases if demand surges.
While the remaining unmined supply of BTC accounts for over 10% of the total supply, it is unlikely that the 21,000,000 limit will be reached within the next 14 months. It will take several decades before all the Bitcoins are minted. Therefore, in the medium term, Bitcoin is not expected to face a shortage of supply.
Considering the upcoming halving event in April 2024, market anticipation could drive prices upward. With less than a year remaining until the next halving, the possibility of gradual price increases becomes more apparent.
When it comes to buying Bitcoin in the UK, it's worth considering utilizing an OTC (Over-the-Counter) desk. OTC desks provide a convenient and efficient way to execute large Bitcoin purchases. They offer personalized service, reduced slippage, and increased privacy compared to traditional exchanges. OTC trading can be especially beneficial for institutional investors or high-net-worth individuals seeking to acquire significant amounts of Bitcoin without causing significant market fluctuations.
In conclusion, as we approach the next Bitcoin halving in 11 months, it is reasonable to expect a slow and steady rise in prices, influenced by factors such as supply, demand, competition, sentiment, and market anticipation.
With the ongoing evolution of the cryptocurrency market, it is crucial to stay informed and exercise caution when investing in Bitcoin or any other digital asset. It's essential to be aware of the risks involved and make informed decisions based on thorough research.