It’s the final month of the year and analysts are out with their projections for the next year. In a note to investors, Standard Chartered suggested that “The financial-market surprises of 2023” will include Bitcoin 

BTC

$16,818

 price diving to $5,000 at some point in the year. The fall will be triggered by a liquidity crunch, which could result in more bankruptcies and a fall in investor confidence in the crypto sector.

If this feels like an extreme, venture capitalist Tim Draper went in the opposite direction and predicted that Bitcoin could skyrocket to $250,000 by the middle of 2023. While speaking with CNBC, Draper said that Bitcoin’s massive rally is likely to be fuelled by increased participation from women who control a large part of retail spending.

In the short term, analysts remain divided on the prospects of a Bitcoin rally. While some analysts expect a Christmas rally to push Bitcoin toward $19,000, others are not so optimistic.

Could the S&P 500 index (SPX) witness profit booking in the near term? Is the U.S. Dollar Index (DXY) ripe for a recovery? What is the effect of these two asset classes on cryptocurrencies? Let’s study the charts to find out.