The Anticipation of Spot Bitcoin ETFs
As we approach the end of the year, there is significant excitement surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Analysts and traders are hopeful that these index funds will lead to a substantial price surge for Bitcoin and the wider crypto market. However, Matrixport, a digital assets financial services platform, has a different perspective. According to their latest report, Matrixport believes that Bitcoin and crypto prices will soar in 2024 regardless of the SEC’s decision on ETF approval.
Federal Reserve’s Rate Cuts as a Catalyst
Matrixport identifies one influential factor: Jerome Powell, the Chairman of the US Federal Reserve (Fed), recently declared victory in the institution’s fight against inflation. The platform notes that in 2019, when the Fed ended its hiking cycle and kept rates on hold for an extended period, Bitcoin prices jumped nearly 300%. Matrixport draws parallels to the present scenario, where the Fed projects three cuts in 2024. This could potentially be a catalyst for increased crypto prices.
Potential Decrease in CPI Strengthens BTC’s Role as Inflation Hedge
Matrixport’s proprietary inflation model suggests that the US Consumer Price Index (CPI) could dip below 2% by the end of 2024. This has significant implications for Bitcoin as it strengthens its role as a potential hedge against inflation. A dip below 2% indicates a deceleration in the rate of price increases, making alternative assets like BTC attractive to investors seeking to preserve their purchasing power.
SEC’s Bitcoin ETF Decision Irrelevant?
Matrixport emphasizes that even if the SEC continues to disapprove of Bitcoin Spot ETFs in January 2024, higher crypto prices are still expected throughout the year. The report also highlights the substantial growth of assets in US money market funds, which could lead to an influx of funds into risk assets such as stocks and cryptocurrencies.
Matrixport’s Bullish Outlook for 2024
In addition to the factors mentioned above, Matrixport’s bullish outlook for 2024 takes into account the Bitcoin halving cycle and the possibility of former President Donald Trump being reelected. These events could contribute to significant price increases for Bitcoin and other cryptocurrencies. As of now, Bitcoin is trading at $42,600, up 1.8% in the past 24 hours.
Hot Take: Matrixport Predicts Soaring Bitcoin and Crypto Prices in 2024
According to Matrixport’s latest report, the approval of spot Bitcoin ETFs by the SEC is not necessary for Bitcoin and crypto prices to soar in 2024. Factors such as potential rate cuts by the Federal Reserve, a decrease in CPI, and significant events like the Bitcoin halving cycle and the US presidential election all contribute to a bullish outlook for the market. Matrixport’s analysis suggests that even without ETF approval, higher crypto prices are expected throughout the year. This optimistic forecast provides hope for traders and investors looking to capitalize on future price surges.
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