Matrixport, a prominent cryptocurrency financial services platform, has made a bold prediction that the price of Bitcoin (BTC) is ready to reach $50,000 in January. The forecast is driven by a confluence of factors, including the potential approval of Bitcoin spot exchange-traded funds (ETFs), growing institutional interest, supply shortages, and historical trends.
Matrixport, a prominent cryptocurrency financial services platform, has made a bold prediction that the price of Bitcoin (BTC) is ready to reach $50,000 in January. The forecast is driven by a confluence of factors, including the potential approval of Bitcoin spot exchange-traded funds (ETFs), growing institutional interest, supply shortages, and historical trends.
This optimistic prediction from Matrixport comes on the heels of a notable rise in the price of Bitcoin. As of the latest update, Bitcoin is trading at $45,849, reflecting an impressive 7.56% increase in the last 24 hours alone. This surge propels Bitcoin to a maximum of 21 monthsadding substantial weight to Matrixport’s forecast that the cryptocurrency will reach an even more ambitious goal of $50,000 in January 2024.
Potential catalysts for Bitcoin
In a comprehensive report published by Matrixport, the company suggests that a major catalyst for the anticipated rise is the potential approval of Bitcoin spot ETFs. According to the report, an announcement could come sooner than expected, possibly today or tomorrow, ahead of the approval window scheduled for January 8, 9 or 10.
Matrixport believes that, if approved, this would not trigger the typical “selling the news” reaction, but would instead result in a substantial price increase for the leading cryptocurrency. The report highlights that timely ETF approval would solidify Bitcoin as a legitimate asset class for institutional portfolios, and could serve as collateral for acquiring other assets.
Matrixport emphasizes potential upside risk, indicating that a substantial amount of fiat money, estimated at between $5 and $10 billion, could struggle to find enough Bitcoin on exchanges for ETF exposure. This shortage is attributed to the movement of Bitcoin off exchanges following the 2022 bankruptcies and the FTX crypto exchange incidents.
The report highlights the impact of Bitcoin mining companies limiting supply around the next halving cycles, expected in April 2024. This limitation could contribute to a supply shortage, which could lead to a scenario in which buyers are eager, but sellers are reluctant to sell at prevailing price levels.
Drawing parallels with historical data, Matrixport notes that Bitcoin tends to recover strongly during halving cycles, coinciding with the US election cycle. The average return during the 2012, 2016 and 2020 election years was a impressive +192%, suggesting the possibility of Bitcoin reaching the $125,000 goal established by Matrixport in July 2023.
Overall, Matrixport’s analysis paints a bullish picture of Bitcoin’s immediate future, with potential for major price moves driven by key catalysts such as ETF approvals, institutional interest, and supply dynamics. Traders and investors will closely monitor developments in the coming weeks as Bitcoin aims to surpass the $50,000 mark.