Matrixport Expects a $50,000 Bitcoin Price Within Weeks – Here’s Why
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Digital asset financial service platform, Matrixport projects a $50,000 Bitcoin (BTC) price towards the end of January 2024 as the market expects an approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC).
In a recent report, the firm noted they expect an ETF approval in January with the price soaring to $50,000 as a result highlighting a strong institutional drive in the market in recent months.
“We are expecting the SEC to approve Bitcoin Spot ETFs in January. This should lift Bitcoin prices above $50,000 by the end of January 2024. Many investors have bought shares in Bitcoin mining or related crypto stocks as a proxy.”
The company hinted at the bullish window before the approval of past ETFs like the Bitcoin Futures. According to the statement, CME Group’s Bitcoin Futures market a rapid increase in the asset price leading up to the official announcement. Within six weeks leading to roll out, the assets price surged 196%.
A new bullish cycle
Presently, the same bullish movement can be seen in the market over the last two months coming off a harsh bearish market. The price of Bitcoin and the wider cryptocurrency market suffered plunging asset prices in 2022 caused by macroeconomic factors and industry implosions reducing investor sentiment.
This year has however recorded an uptick in investment following the filing of spot BTC ETF applications by firms like BlackRock and huge institutional anticipation. The argument in favor of an ETF is a new window for billions of dollars to pour into the market with investors allowed to increase their exposure.
In the last two months, Bitcoin price has surged to highs not seen in several months hitting the $43,000 mark and driving the total market capitalization. Institutional inflows into BTC institutional funds are now at $1.6 billion year-to-date (YTD) with Assets Under Management (AUM) at $36 billion.
In a recent interview with CNBC, Grayscale’s CEO Michael Sonnenshein said that an approval can unlock about $30 trillion of advised wealth to spur a new drive in the market.
Grayscale CEO Says Spot Bitcoin ETF Could Usher In $30 Trillion to The Market – Here’s More@Grayscale CEO Michael Sonnenshein has restated growing optimism over an investment drive in the cryptocurrency market.#CryptoNews #newshttps://t.co/oXggSeaBOx
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“(An approval) will unlock the opportunity for a part of the investment community that got worse has been locked out of the opportunity of participating and having Bitcoin in their portfolios; we’re talking about the advise market here in the US, which is today about $30 trillion worth of advised wealth.”
Uphill run to end the year
Furthermore, the firm predicts a bullish drive for Bitcoin in the last week of the year noting a historical 3% price growth. With several companies releasing ETF adverts, Matrixport expects more activity as firms seek to become the dominant player.
“This also means that Bitcoin has a high chance of breaking higher during Christmas, and we firmly expect Bitcoin to reach $50,000 if Bitcoin Spot ETFs are approved by then.”
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