Bitcoin’s March 2024 Target Remains Feasible, Says Matrixport Report
Despite a recent downturn, Bitcoin is still on track to reach its target of $63,000 by March 2024, according to Matrixport’s latest report. Several catalysts support this projection:
- Approval of a Bitcoin spot ETF
- Upcoming Bitcoin halving
- Expectations of an interest rate cut following the Federal Reserve’s FOMC meeting
- The US presidential election
Fueling Bitcoin’s March 2024 Goal
The approval of spot Bitcoin ETFs by the SEC has led to increasing demand for these offerings. In the past week, spot Bitcoin ETFs have seen consistent increases in funds, outperforming other exchange-traded products in the US.
Recent statistics show that net positive inflows into these ETFs have exceeded $2.2 billion for two consecutive weeks from February 12 to 16.
The majority of funds flowed into BlackRock’s IBIT ETF, followed by Fidelity’s FBTC, Ark Invest/21Shares’ ARKB, and Bitwise’s BITB.
The report also highlights expectations of interest rate reductions after the Federal Reserve’s FOMC meetings, which could drive investors towards riskier assets like Bitcoin. Additionally, the forthcoming US presidential elections and policy uncertainties may influence Bitcoin prices as investors seek alternative assets as a hedge against potential shifts in economic policies.
However, predicting the exact impact of these political events on crypto markets is challenging due to their complexity.
Former US President Donald Trump, who is currently leading the race for the Republican Party presidential nomination, has changed his stance on Bitcoin. Despite previously criticizing it during his presidency, he now shows a willingness to accept Bitcoin and acknowledges its growing demand.
More Demand For Bitcoin
Jag Kooner, Head of Derivatives at Bitfinex, predicts that 2024 will be a favorable year for safe-haven assets like Bitcoin, gold, and silver. Elevated inflation rates exceeding central banks’ preferred thresholds are expected to lead to higher interest rates, which could moderate market expectations for monetary policy relaxation in developed markets.
“Looking ahead to 2024, the outlook for equity markets appears more challenging. This aligns with our view and we believe will result in more demand for commodities and Bitcoin.”
Hot Take: Bitcoin’s Future Looks Bright 🚀
Despite a recent hurdle in reaching $52,000, Bitcoin’s target of $63,000 by March 2024 remains feasible. With catalysts such as the approval of a Bitcoin spot ETF, upcoming halving, potential interest rate cuts, and the US presidential election, there are several factors fueling Bitcoin’s growth.
The demand for spot Bitcoin ETFs has been increasing significantly, with net positive inflows exceeding $2.2 billion in consecutive weeks. Anticipations of interest rate reductions and policy uncertainties further contribute to Bitcoin’s appeal as an alternative asset.
While political events can have complex effects on crypto markets, the willingness of influential figures like former President Donald Trump to accept Bitcoin signals growing acceptance and adoption.
In the coming years, safe-haven assets like Bitcoin are expected to gain more traction due to elevated inflation rates and challenging equity market outlooks. This could lead to increased demand for commodities and Bitcoin as investors seek refuge from market uncertainties.
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