Investing.com – A dead calm reigns, which has yet to recover from its November crash in the face of the FTX bankruptcy, but some investors believe a bull market may be imminent in the cryptocurrency.
This is especially the case for cryptocurrency veteran and ShapeShift CEO Erik Voorhees, who estimates that the value of Bitcoin could nearly triple by the summer of 2023.
The next Bitcoin bull market is imminent, +140% by summer
Indeed, in a new interview with the Bankless podcast, Voorhees said that it won’t take another decade for a cryptocurrency bull market:
“It won’t take 10 years. If it takes 10 years for the bull market to happen, the whole thing has probably failed. So I’m happy to put it that way. I’d say it’s six months to three years. I think usually is the time it takes for people’s minds to start changing and speculative cycles to return.”
He explained that macroeconomic conditions need to improve and that the Fed will need to send clear signals to shift towards less aggressive policy for a sustainable rally to occur, which could happen sooner or later.
“It also has a lot to do with the macroeconomic environment. As long as interest rates stay high and monetary conditions are tighter, there will be a headwind. That will start to change in the early or mid-year . So I wouldn’t be surprised if it hits $40,000 by the summer.”
Compared to the current price of $16,700, this represents +140% upside potential.
Voorhees stresses the importance of owning your own cryptocurrencies
Voorhees also returned to the year 2022, which has been the site of many scandals and bankruptcies, underlining like many others the importance of owning your own cryptocurrencies.
“This lesson people continue to have to learn is the danger of exchanges and custody wallets. This is not a new lesson. Newcomers to the world of cryptocurrencies should go straight to personal ownership, but surely anyone who has been in the sector for a while and is learning some of these things he needs to understand how to use self-detention”.
He also pointed out that the fact that cryptocurrencies are mainly held on trading platforms and other online services has other disadvantages than the bankruptcy risk of the platforms, explaining that “if the majority of crypto funds and cryptocurrency wealth resides with the intermediaries : A) we will never escape the regulation this stuff is meant to escape and B) we will never escape the need to trust humans.”