Matrixport Forecasts Bitcoin’s Surge to $50,000 Within the Week
Matrixport, a leading crypto financial services platform, predicts Bitcoin will soar to $50,000 by the end of this week, according to their latest investor note.
Matrixport’s Bold Bitcoin Prediction for January 2024
Matrixport’s analysis, released on January 2, presents a compelling case for Bitcoin’s price surge. The report highlights the consolidation phase of Bitcoin’s price at the end of the previous year as a key indicator of a strong start to 2024.
The observed pattern of mid-to-end December consolidation is seen as a precursor to a significant breakout, driven by a robust influx of buying as the new year begins.
An important element in Matrixport’s prediction is the changing sentiment among institutional investors. In contrast to the previous year’s bearish stance, the current market environment has shifted.
Institutional investors, now more alert to the possibility of missing out on gains, are anticipated to engage in substantial investments with the opening of markets in 2024. Matrixport anticipates an immediate investment rally, potentially taking many investors by surprise.
The Role of a Potential Spot ETF Approval
The report also points to an imminent announcement regarding the approval of a Bitcoin Spot ETF as a possible catalyst for the surge. The expectation is that such an announcement could come unexpectedly early, possibly ahead of the anticipated dates in January.
Contrary to being a ‘sell-the-news’ event, Matrixport views the approval as a significant step in legitimizing Bitcoin as an asset class for institutional portfolios, which could lead to a considerable increase in its price.
Matrixport’s analysis also focuses on the reduced availability of Bitcoin on exchanges. The report notes that a significant 70% of all Bitcoins have not been moved in the last year, pointing to a scarcity in the market. This limited supply of BTC is expected to contribute to the rally, as scarcity often drives prices higher.
The Impact of the Upcoming Halving Cycle
Looking forward, the report emphasizes the importance of the next Bitcoin halving cycle, slated for April 2024. Matrixport draws parallels with commodity markets, where a supply crunch, combined with forced buying amid reluctant selling, often leads to sharp price increases.
This upcoming cycle is expected to intensify the supply shortage, potentially spurring a substantial hike in Bitcoin’s price.
Historical Trends and Long-Term Predictions
Matrixport further strengthens its prediction by referencing Bitcoin’s historical performance during halving cycles, which tend to coincide with US election cycles.
The report notes an average return of +192% for Bitcoin during the 2020, 2016, and 2012 years. Based on this pattern, Matrixport sets a long-term target of $125,000 for BTC, guided by their ‘one-year-new-high’ indicator.
The report also comments on the current state of the funding rate in the futures market, which is notably high and indicates a bullish sentiment among crypto traders.
This elevated funding rate suggests that the futures market is putting upward pressure on the spot market price of Bitcoin. Matrixport concludes that this dynamic is likely to push BTC above their $50,000 target for January 2024, a goal they see as achievable within the first week of the year.
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