The Approval of a Bitcoin Spot ETF Expected to Drive Bitcoin Price to $50,000, Says Matrixport Research
A recent research conducted by Matrixport suggests that the approval of a Bitcoin Spot ETF is imminent, which could potentially lead to a significant surge in the price of Bitcoin, reaching up to $50,000. This optimistic projection is based on a consolidation that occurred between the middle and the end of December, and the research report was issued on January 2, 2024. Several factors, such as the possibility of institutional investment and a change in market attitude, support this outlook.
The report highlights that a large portion of Bitcoin is still not available on exchanges due to the FTX crypto exchange implosions in 2022. This lack of liquidity could result in a supply bottleneck for the cryptocurrency, potentially driving prices higher. The research suggests that between $5 and $10 billion worth of fiat money might enter the market, further contributing to the price increase. Matrixport’s research publication titled “Unlocking the Superpower of Bitcoin in Asset Allocation,” released in July 2023, provides additional evidence for this viewpoint.
Furthermore, the research draws attention to a favorable association between Bitcoin price movements and voting cycles in the United States, with historical data showing significant returns during halving cycles. This correlation further adds to the optimism surrounding Bitcoin’s future prospects. Based on its “one-year-new-high” indicator, Matrixport has set a long-term target price of $125,000 for Bitcoin, showcasing the company’s confidence in the upward trajectory of the cryptocurrency.
Matrixport’s previous projections consistently demonstrate a positive outlook. For instance, a newsletter published on February 17, 2023, stated that Bitcoin had surpassed $24.7K, attributing this growth to positive institutional investment and growing retail demand. Another study published on March 2, 2023, highlighted a 38% increase in Bitcoin during January, leading to a significant rise in investment related to the cryptocurrency. These findings, along with Matrixport’s long-standing positive stance on Bitcoin’s potential, further support their position.
In conclusion, the research conducted by Matrixport suggests that Bitcoin is on the brink of experiencing a substantial price gain. This increase can be attributed to a combination of market dynamics, the potential for institutional adoption, and historical trends. Matrixport maintains a positive outlook on Bitcoin’s future prospects, consistent with their previous forecasts and market evaluations.