Bitcoin’s value could dip below $20,000 in 2023 when considering inflation, despite reaching highs of $69,000 in the past years. Adjusted for inflation, the cryptocurrency’s price has remained relatively static since 2017, hovering just above its old all-time high. As of August 25, 2023, the value of $20,000 worth of Bitcoin purchased in 2017 has only appreciated to $24,942. This highlights the cryptocurrency’s stable yet modest performance over the years.
BTC/USD 1-month chart. Source: TradingView
Bitcoin’s Role as a Store of Value
Bitcoin enthusiasts note that even with inflation adjustment, the cryptocurrency’s ability to retain its value is noteworthy. Anonymous marketing officer BTCGandalf of Bitcoin mining company Braiins acknowledges the lack of attention to this issue, despite its implications.
Jackson Hole Event’s Impact on Bitcoin
Market attention is now directed towards the annual Jackson Hole Economic Symposium on August 25, where Federal Reserve Chair Jerome Powell is expected to discuss economic policies. Investors hope for insights that could break the current status quo of Bitcoin’s price. The event’s outcomes could lead to increased volatility and potentially a market shift.
U.S. Inflation Calculator data (screenshot). Source: usinflationcalculator.com
Liquidity Concerns and Future Outlook
An analysis of the BTC/USD order book on Binance reveals a scarcity of significant liquidity above $25,000, suggesting the potential for swift and sizable price fluctuations. This raises the prospect of a “bearadise,” a term coined to describe a bear market scenario with lower prices. With U.S. inflation data and the Jackson Hole event shaping market sentiment, the cryptocurrency landscape remains uncertain.
