Matrixport, a crypto financial services company founded by Jihan Wu, former CEO of Bitmain, recently shared a summary which delves into its forecast for bitcoin, predicting a significant increase in its price.
Founded in 2019, Matrixport has been closely following the dynamics and trends of the bitcoin market. Their recent analysis suggests a strong future for bitcoin, particularly considering its potential to break the $50,000 barrier by 2024.
Spot ETF Approval Could Catapult bitcoin Above $50,000
Matrixport bases its optimistic forecast on the early approval of bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) in January. This crucial regulatory nod is seen as a critical factor that could push the price of bitcoin above $50,000.
The summary draws a parallel to an earlier significant moment in bitcoin history: the launch of bitcoin futures by the CME Group and CBOE in December 2017. That event marked a notable rise in the price of bitcoin, pushing it to reach the $20,000 for the first time.
Matrixport expected the SEC to approve bitcoin spot ETFs in January and this should lift bitcoin prices above $50,000 by the end of January 2024. TV commercials are already running from several ETF applicants, which will continue supporting bitcoin prices.…
– Wu Blockchain (@WuBlockchain) December 21, 2023
Matrixport equates the potential impact of spot ETFs with this historic milestone, anticipating a similar, if not greater, market reaction.
Industry experts echo Matrixport's optimism
Matrixport is not alone in its bullish stance on bitcoin's prospects. Other industry experts and analysts have echoed similar predictions, especially in light of the likely approval of a bitcoin spot ETF.
Michael van de Poppe, a prominent crypto analyst, recently suggested that bitcoin is about to reach the $47,000 to $50,000 range soon. Van de Poppe, like Matrixport, attributes this potential rise to the early approval of btc spot ETFs by leading financial institutions such as BlackRock, Fidelity, and Ark Investment.
Investment management firm VanEck also shares this sentiment and forecasts a substantial influx of funds into bitcoin spot ETFs. They predict that more than $2.4 billion will be invested in these spot ETFs in the first quarter of 2024 alone.
VanEck's report highlights a growing investor trend toward “hard money” assets, which are less influenced by US authorities. bitcoin, with its resilience and limited correlation with traditional financial markets, according to VanEck, stands out as a particularly attractive option for investors.
Analysts at VanEck also strongly believe in the stability of the bitcoin market and project that its price will likely not fall below $30,000 in early 2024. This prediction is reinforced by another analyst, Ali, who has identified a strong zone of support for bitcoin between $37,150 and $38,360.
This range is supported by significant purchasing activities from around 1.52 million addresses, accumulating approximately 534,000 btc. Ali's analysis suggests that this significant accumulation acts as a solid foundation, which could prevent further declines in bitcoin's value.
Featured image from Unsplash, chart from TradingView
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