Matrixport Predicts $50,000 Bitcoin Price in January 2024
According to Matrixport, a digital asset financial service platform, Bitcoin (BTC) is projected to reach a price of $50,000 by the end of January 2024. This prediction is based on the expectation of the Securities and Exchange Commission (SEC) approving a spot Bitcoin ETF. The firm believes that there has been a strong institutional drive in the market recently, leading to this bullish projection.
Bullish Window Before ETF Approval
Matrixport points out that similar bullish movements have occurred before the approval of previous ETFs like Bitcoin Futures. For example, CME Group’s Bitcoin Futures saw a 196% surge in price within six weeks leading up to the official announcement. This suggests that the market could experience a new bullish cycle before the approval of a spot Bitcoin ETF.
Institutional Inflows and Uptick in Investment
Despite a bearish market in 2022, there has been an uptick in investment this year. Firms like BlackRock have filed spot BTC ETF applications, generating anticipation among institutional investors. The approval of an ETF could bring billions of dollars into the market and increase investor exposure. Institutional inflows into BTC institutional funds have reached $1.6 billion year-to-date (YTD), with Assets Under Management (AUM) at $36 billion.
Potential Unlocking of Trillions in Wealth
The CEO of Grayscale, Michael Sonnenshein, believes that an approval of a spot Bitcoin ETF could unlock about $30 trillion of advised wealth and drive further growth in the cryptocurrency market.
Predicting Bitcoin’s Uphill Run to End the Year
Matrixport also predicts a bullish drive for Bitcoin in the last week of the year, with a historical 3% price growth. As more companies release ETF adverts, the firm expects increased activity and a higher chance of Bitcoin reaching $50,000 if spot Bitcoin ETFs are approved by then.
Hot Take: Matrixport’s Bullish Projection for Bitcoin
Matrixport projects a $50,000 Bitcoin price by the end of January 2024, driven by the potential approval of a spot Bitcoin ETF by the SEC. The firm highlights the strong institutional drive in the market and draws parallels to previous bullish cycles before ETF approvals. The expectation is that billions of dollars could pour into the market through institutional inflows and increased investor exposure. Grayscale’s CEO believes that this approval could unlock trillions of dollars in advised wealth. Additionally, Matrixport predicts a bullish run for Bitcoin in the last week of the year. Overall, Matrixport’s projection suggests positive growth and potential opportunities for crypto investors.
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