Crypto financial services company Matrixport has reiterated its earlier forecast that Bitcoin’s price could reach $45,000 by the end of the year, citing the increasing FOMO sentiment in the Bitcoin market. As Bitcoin’s market share rises to 52.1% and its trading volume surges to $29 billion in the past 24 hours, Matrixport believes that panic buying is driving the renewed FOMO sentiment. The company attributes the abnormally high Bitcoin futures funding rates as a contributing factor to the current market excitement.
Matrixport’s Year-End Target
Earlier this year, Matrixport initially set a year-end target of $45,000 for Bitcoin. With the recent surge in Bitcoin’s price and growing expectations of the approval of a spot Bitcoin ETF, Matrixport has reaffirmed its prediction. The company suggests that if the U.S. Securities and Exchange Commission (SEC) approves a BlackRock spot Bitcoin ETF, Bitcoin’s price could potentially receive an additional boost.
“Bitcoin’s price could experience a further boost if the SEC approves a BlackRock spot Bitcoin ETF.”
Matrixport’s report highlights the potential inflows of $12-24 billion into the Bitcoin ETF if 10%-20% of gold ETF investors decide to diversify their investments into Bitcoin. It is worth noting that this estimation is considered conservative, given that the Grayscale Bitcoin Trust (GBTC) has previously reached a peak market cap of $44 billion. The anticipation of a spot Bitcoin ETF approval has already had a significant impact on the market, as evidenced by the price increase following BlackRock’s application.
Potential Bitcoin Price Rally
If the approval for a spot Bitcoin ETF does materialize, Matrixport estimates that Bitcoin’s price could potentially rally to $56,000. Despite the recent delay in the SEC’s review of ETF applications, there is a growing belief that institutional funds will flow into the cryptocurrency market. Matrixport emphasizes the potential impact of the U.S. registered investor advisor (RIA) community, which manages around $5 trillion. A modest 1% allocation recommendation for Bitcoin from this group could result in approximately $50 billion in inflows.
