Higher Crypto Market Prices Expected in 2024, Says Matrixport Analyst
Matrixport analyst Markus Thielen predicts that the crypto market will experience higher prices in 2024, even if a spot bitcoin ETF is not approved by the Securities and Exchange Commission (SEC). Thielen attributes this potential growth to increased liquidity, the upcoming Bitcoin halving event, and the possibility of Donald Trump being re-elected as president, which could act as additional catalysts.
Rise in U.S. Money Market Funds
Thielen highlights the significant increase in money market funds in the U.S. since the onset of the Covid pandemic. The amount has risen from $3 trillion to $6.1 trillion, resulting in approximately $370 billion paid in interest annually. This influx of funds can easily flow into riskier investments like stocks and cryptocurrencies. Furthermore, Thielen suggests that the $6.1 trillion principal can also drive up asset prices.
The Bitcoin Halving Event and Potential Election of Donald Trump
Next year marks a Bitcoin halving year when the block reward is reduced by half. Thielen notes that bitcoin prices have historically increased by an average of 192% during halving years. Additionally, as 2024 coincides with a U.S. presidential election year, Thielen believes there is a high likelihood of Donald Trump being re-elected. His policies could potentially boost the U.S. economy, stock market, and crypto prices.
Thielen acknowledges that even if a Republican President returns to power, Democrat SEC Chair Gary Gensler may continue serving until June 2026. Nevertheless, Thielen expects a spot bitcoin ETF to be approved by then. He also suggests that Trump’s support for digital assets will further solidify them as a vital part of the economy.
In the remaining weeks of 2023, Thielen anticipates bitcoin prices to hover between $40,000 and $45,000. However, he foresees a potential rally in January as traders monitor spot bitcoin ETF approval dates. Currently, bitcoin is trading at $42,652, showing a year-to-date increase of over 150%.
Hot Take: Positive Outlook for Crypto Market Growth
Matrixport analyst Markus Thielen predicts that the crypto market will experience higher prices in 2024 due to increased liquidity, the Bitcoin halving event, and the potential re-election of Donald Trump. The significant rise in U.S. money market funds provides ample opportunity for funds to flow into riskier investments like stocks and cryptocurrencies. Thielen also highlights the historical price increase during halving years and the potential economic boost from Trump’s policies. Despite uncertainties surrounding regulatory approval and political dynamics, Thielen remains optimistic about the crypto market’s future growth.
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