Crypto Financial Services Company Predicts Bitcoin Price Could Reach $45,000 by Year-End
Crypto financial services company Matrixport is sticking to its earlier prediction that Bitcoin’s price could reach $45,000 by the end of the year. This comes as Bitcoin’s market share has surged to 52.1% and its trading volume has reached $29 billion in the past 24 hours.
“Abnormally High Bitcoin Futures Funding Rates”
Matrixport attributes the renewed FOMO (fear of missing out) sentiment in the Bitcoin market to the abnormally high Bitcoin futures funding rates. These rates suggest that many traders are engaging in panic buying.
The company believes that Bitcoin’s price could receive a further boost if the U.S. Securities and Exchange Commission (SEC) approves a BlackRock spot Bitcoin exchange-traded fund (ETF). Matrixport estimates that if 10%-20% of gold ETF investors decide to diversify into Bitcoin, it could result in potential inflows of $12-24 billion into the Bitcoin ETF.
Spot Bitcoin ETF Approval Could Send BTC Price to $56,000
The anticipation of a spot Bitcoin ETF approval has already had an impact on the market. BlackRock’s application for a spot Bitcoin ETF led to a significant price increase for Bitcoin. If approved, Matrixport estimates that Bitcoin’s price could potentially rally to $56,000.
Despite recent delays in reviewing ETF applications by the SEC, there is a growing belief that the cryptocurrency market could see a significant influx of institutional funds. Matrixport highlights the potential impact of the 15,000-strong U.S. registered investor advisor (RIA) community, which manages around $5 trillion. Even a modest 1% allocation recommendation for Bitcoin from this group could bring about around $50 billion in inflows.
Hot Take: Bitcoin Price Predictions Remain Bullish Amid Growing Institutional Interest
Matrixport’s doubling down on its prediction of a $45,000 Bitcoin price and the potential for a further rally to $56,000 if a spot Bitcoin ETF is approved reflects the growing bullish sentiment in the crypto market. With Bitcoin’s dominance and trading volume on the rise, coupled with the possibility of institutional investors entering the space, many experts believe that Bitcoin’s price could continue to climb in the near future.
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