Matrixport Forecasts Bitcoin to Climb to $50,000 Before the Week Concludes

Cryptocurrency financial services firm Matrixport asserts a potential for Bitcoin Matrixport suggests that Bitcoin is likely to trade above $50,000 by the end of this week. The company notes that after a typical period of consolidation in mid to late December, a surge in demand is anticipated, driven by strong buying trends at the start of the year.

As anticipation builds for a potential Bitcoin uptick in 2024, institutional investors are rushing to make purchases as the trading markets open. This rush could lead to a sudden price increase that might catch many traders by surprise.

A potential Bitcoin Spot ETF That said, the company also highlights possible risks, noting that around $5-10 billion in fiat may struggle to secure sufficient Bitcoin on exchanges for desirable exposure.

Due to the aftermath of the 2022 bankruptcies and the collapse of some cryptocurrency exchanges, about 70% of existing Bitcoins have stayed dormant over the past year, as holders opt for cold-storage solutions. Bitcoin ETFs Additional Factors Supporting Bitcoin's Ascent FTX Matrixport has evaluated Bitcoin’s price growth potential, taking into account its correlation with the fluctuations in Tether’s market cap, a factor that has been significant in maintaining a bullish outlook for Bitcoin, especially following a dovish approach taken by Chair Powell in October 2023.

The company stresses that historically, Bitcoin tends to undergo substantial rallies during halving cycles that align with the U.S. electoral cycle. Remarkably, the average return during previous halving years—2020, 2016, and 2012—was +192%. This trend could potentially drive Bitcoin towards an ambitious target of $125,000, as projected by Matrixport last year.

Despite the current lack of minting activities that usually signal increased fiat-to-crypto inflows, Matrixport believes that the ongoing price surge could indicate a market where there is limited selling activity, leading to upward price pressures. Federal Reserve This morning, the funding rate reached a remarkable high of +66%. In this scenario, long positions are compensating short positions with an annual fee of 66% to maintain their long stance. This situation suggests that the futures market is applying upward pressure on the spot market, which could propel Bitcoin over the $50,000 threshold.

Taking into account all these elements, especially the potential approval of a Bitcoin Spot ETF this week, Bitcoin could see a significant surge to $50,000 in January.

Please remember that the information provided on this page is not meant to be interpreted as legal, tax, investment, or financial advice. It is crucial to invest only what you can afford to lose and to seek independent financial counsel when uncertain. For more details, we recommend reviewing the terms and conditions as well as the help and support resources offered by the issuer or advertiser. MetaversePost is dedicated to providing accurate and impartial reporting, but please note that market conditions can shift unpredictably. Tether Alisa, a committed journalist with Cryptocurrencylistings, focuses on cryptocurrency, zero-knowledge proofs, investments, and the broad Web3 landscape. With her sharp intuition for emerging trends and technologies, she provides in-depth reporting to educate and engage readers in the continuously changing world of digital finance.

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