Digital asset financial service platform, Matrixport, has made a bold projection for Bitcoin (BTC), foreseeing a price of $50,000 by the end of January 2024. The basis for this prediction lies in the market’s anticipation of the approval of a spot Bitcoin ETF by the Securities and Exchange Commission (SEC).
The Growing Institutional Drive
Matrixport’s recent report highlights a strong institutional drive in the market, particularly in the past few months. The firm expects an ETF approval in January, which could result in the price of Bitcoin soaring to $50,000. This bullish window parallels the trend observed before the approval of previous ETFs, specifically the Bitcoin Futures.
“CME Group’s Bitcoin Futures market witnessed a rapid increase in the asset price leading up to the official announcement. Within six weeks leading to roll out, the asset’s price surged 196%.”
This bullish movement is evident in the market, especially over the last two months. Bitcoin and the broader cryptocurrency market have rebounded from a bearish period, characterized by plunging asset prices in 2022 due to macroeconomic factors and industry implosions. However, this year has seen a resurgence in investment following the filing of spot BTC ETF applications by prominent firms like BlackRock.
“The argument in favor of an ETF is a new window for billions of dollars to pour into the market, with investors allowed to increase their exposure. Bitcoin’s recent surge, hitting the $43,000 mark, and attracting institutional inflows of $1.6 billion year-to-date, indicate a renewed investor sentiment in the cryptocurrency.”
The Potential Market Impact
The approval of a Bitcoin ETF holds significant potential for the cryptocurrency market. Grayscale’s CEO, Michael Sonnenshein, emphasized this point in a recent interview with CNBC, stating that the approval could “unlock about $30 trillion of advised wealth” and drive further growth in the market.
“(An approval) will unlock the opportunity for a part of the investment community that has been locked out of the opportunity of having Bitcoin in their portfolios; we’re talking about the advised market here in the US, which is today about $30 trillion worth of advised wealth.”
Looking ahead, Matrixport predicts a bullish drive for Bitcoin in the last week of the year, projecting a historical 3% price growth. With various companies releasing ETF advertisements, the platform expects increased activity as firms vie to become dominant players.
“This also means that Bitcoin has a high chance of breaking higher during Christmas, and we firmly expect Bitcoin to reach $50,000 if Bitcoin Spot ETFs are approved by then.”
