Matrixport Forecasts Explosive Bitcoin Surge to $50,000 Amid Imminent Spot ETF Approval

Matrixport, a prominent financial institution, anticipates a monumental surge in Bitcoin’s value, projecting a skyrocketing rise to $50,000 in January. The prediction, hinged on multiple factors, including imminent Bitcoin spot ETF approvals, institutional investments, supply constraints, and historical market trends, sets an electrifying tone for the crypto space in the coming year.

Matrixport’s foresight rests on compelling grounds, citing the convergence of pivotal elements. They highlight the impending Bitcoin spot ETF approvals, earmarking these as catalysts to propel Bitcoin prices to unprecedented heights. The approval, if granted sooner than expected, could trigger a significant surge, debunking the anticipated ‘sell-the-news’ pattern due to its legitimization of Bitcoin within institutional portfolios.

Notably, the scarcity of Bitcoin on exchanges has surged, with a significant portion remaining dormant over the past year. This shortage, coupled with increased familiarity and preference for cold-storage solutions post-exchange upheavals, further bolsters the projection of limited availability for ETF exposure.

Source: Matrixport

The estimates from October 2023 envision substantial inflows of $24-50 billion into a US-listed Bitcoin Spot ETF, potentially intensifying the scarcity, further pushing prices upward. The dovish stance adopted by Federal Reserve Chair Powell in October 2023 has also added fuel to this bullish sentiment.

Matrixport also draws attention to Bitcoin’s historical behavior, emphasizing its resilience and tendency to surge during halving cycles, aligning with the US election cycle. Drawing parallels between Bitcoin’s performance and that of US stocks during election years over the past six decades, they project a bullish trajectory, setting sights on a staggering $125,000 target.

Furthermore, the sustained high funding rates during the holiday season indicate unwavering bullishness among crypto traders, reflecting an expectation of imminent ETF approval and signaling a potential move into the much-anticipated altcoin season.

The futures market’s significant impact on squeezing the spot market, coupled with the absence of sellers, suggests an inevitable upward push in Bitcoin’s value. With funding rates soaring above 66%, Matrixport foresees Bitcoin breaking through the $50,000 mark, possibly within the week.

While cautious about the absence of notable fiat-to-crypto inflows, Matrixport remains confident that the absence of selling pressure and the intense market squeeze will likely steer Bitcoin toward its projected $50,000 mark, highlighting the potential for even higher trading levels in the near future.

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