Bitcoin Spot ETF Approval Expected to Drive Price to $50,000
A recent research by Matrixport suggests that the approval of a Bitcoin Spot ETF is anticipated to happen soon, resulting in a significant price surge for Bitcoin, potentially reaching $50,000. This optimistic projection is based on a consolidation period in December and is supported by factors such as institutional investment and a shift in market sentiment.
Supply Bottleneck Raises Bitcoin Prices
The report highlights that a substantial amount of Bitcoin is still not available on exchanges following the FTX crypto exchange implosions in 2022. This lack of liquidity could lead to price increases, especially since it is estimated that $5 to $10 billion worth of fiat money may enter the market. Matrixport’s research from July 2023 titled “Unlocking the Superpower of Bitcoin in Asset Allocation” further supports this view.
Bitcoin’s Positive Association with US Voting Cycles
The research also points out a positive correlation between Bitcoin price movements and voting cycles in the United States, with historical data showing significant returns during halving cycles. This adds to the overall optimism surrounding Bitcoin’s future. Matrixport has set a long-term target price of $125,000 for Bitcoin based on its ‘one-year-new-high’ indicator, demonstrating their confidence in its upward trajectory.
Consistent Positive Projections by Matrixport
Previous forecasts by Matrixport consistently show positive outlooks for Bitcoin. For example, a newsletter published in February 2023 attributed Bitcoin’s growth to institutional investment and increasing retail demand. Another study in March 2023 noted a 38% increase in Bitcoin during January, leading to significant investments tied to the cryptocurrency. These findings support Matrixport’s long-standing positive stance on Bitcoin’s potential.
Hot Take: Bitcoin Poised for Substantial Price Gain
In summary, Matrixport’s research indicates that Bitcoin is on the brink of a significant price surge. This is driven by market dynamics, the possibility of institutional adoption, and historical trends. Matrixport’s consistent positive outlook aligns with their previous forecasts and market evaluations.
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