Matrixport, a crypto financial services firm founded by Jihan Wu, former CEO of Bitmain has recently shared a summary that delves into its forecast for Bitcoin, predicting a significant surge in its price.

Founded in 2019, Matrixport has been closely monitoring Bitcoin’s market dynamics and trends. Their recent analysis suggests a robust future for Bitcoin, particularly noting 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 anticipated approval of Bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) in January. This crucial regulatory nod is seen as a pivotal factor that could propel Bitcoin’s price to soar above $50,000.

The summary draws a parallel to a previous significant moment in Bitcoin’s history – the launch of Bitcoin futures by the CME Group and CBOE in December 2017. That event marked a notable spike in Bitcoin’s price, pushing it to reach $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 being rolled out already from multiple ETF applicants, which will continue to support Bitcoin prices.…

— Wu Blockchain (@WuBlockchain) December 21, 2023

Matrixport equates the potential impact of spot ETFs to this historical 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 probable approval of a spot Bitcoin ETF.

Michael van de Poppe, a prominent crypto analyst, recently suggested that Bitcoin is poised to reach the $47,000-$50,000 range soon. Van de Poppe, just like Matrixport, attributes this potential surge to the anticipated approval of spot BTC ETFs by leading financial entities like BlackRock, Fidelity, and Ark Investment.

Investment management firm VanEck also shares this sentiment, forecasting a substantial influx of funds into spot Bitcoin ETFs. They predict over $2.4 billion pouring into these spot ETFs in the first quarter of 2024 alone.

VanEck’s report highlights a growing investor trend towards ‘hard money’ assets, which are less influenced by US authorities. Bitcoin, with its resilience and limited correlation to traditional financial markets, according to VanEck, stands out as a particularly attractive option for investors.

VanEck analysts also hold a firm belief in Bitcoin’s market stability, projecting 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 robust support zone for Bitcoin between $37,150 and $38,360.

This range is backed by substantial buying activities from around 1.52 million addresses, accumulating approximately 534,000 BTC. Ali’s analysis suggests that this significant accumulation acts as a strong foundation, potentially preventing further downturns in Bitcoin’s value.

Featured image from Unsplash, Chart from TradingView

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Filed under: Bitcoin - @ December 21, 2023 7:00 pm