Bitcoin Price Predicted to Surpass $40,000 This Year, Says Analyst
According to analyst Markus Thielen from Matrixport, Bitcoin’s price could exceed $40,000 this year. This prediction comes after the recent settlement between Binance and the Department of Justice (DOJ), as well as former CEO Changpeng Zhao’s guilty plea to financial violations. Thielen believes that these events signify a turning point in the crypto landscape.
Binance Settlement and CEO Fine
Binance agreed to pay a record-breaking $4.3 billion in fines, making it one of the largest corporate settlements in US history. Zhao, who stepped down as CEO, will pay a $50 million fine and a $175 million personal recognizance bond. He may also face an 18-month prison sentence.
Binance Likely to Remain a Top Exchange
The settlement outcome, which was less severe than anticipated, suggests that Binance will likely remain one of the top three exchanges in the next 2 to 3 years. The settlement did not accuse Binance of misappropriating user funds or engaging in market manipulation.
Bitcoin’s Temporary Correction
Despite initial concerns about the Binance news, Bitcoin only experienced a temporary correction. Thielen describes it as a “robust counter-trend reaction,” and he believes that Bitcoin will inevitably surge above $40,000.
Bitcoin Seasonality and ETF Approval
In October 2023, Bitcoin’s price increased by 28%. Thielen attributes this trend to the anticipated approval of a Bitcoin spot ETF in the US. He also mentions that December historically sees average returns of 12%, which could potentially push Bitcoin to $42,000.
Tether’s Market Capitalization Increase
Tether’s USDT market capitalization has grown by $5 billion since September. This indicates a trend of institutional investors shifting from fiat into stablecoins, potentially converting them into cryptocurrencies like Bitcoin.
Macro Environment Supportive of Crypto
The macro environment continues to support the crypto market, with Matrixport predicting a halving of inflation and a decline in bond yields. These factors are expected to boost the stock market, which often correlates with cryptocurrencies.
Hot Take: Bitcoin’s Price Poised to Surpass $40,000 Following Binance Settlement
With Binance’s settlement and the positive macro environment for crypto, analyst Markus Thielen predicts that Bitcoin will exceed $40,000 this year. The settlement outcome suggests that Binance will remain a top exchange, while seasonal trends and institutional interest in stablecoins further support Bitcoin’s growth. Additionally, the potential approval of a Bitcoin spot ETF in the US could contribute to its rise. Overall, Thielen is confident in Bitcoin’s future performance and expects it to surpass $38,000 by the end of this month.
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