[ccpw id="13305"]

Bitcoin Could Soar To $50,000 This Week, Matrixport Predicts

[ad_1]

Matrixport, a leading crypto financial services platform and prime broker for institutions, has forecasted a significant surge in the price of Bitcoin. In their latest investor note, Matrixport suggests that the Bitcoin price could surge to $50,000 by the end of the week.

Why $50,000 Per Bitcoin Seems Possible This Week

Matrixport’s analysis, published on January 2, 2023, under the title “Explosive Bitcoin Surge to $50,000 Looms Large in January,” argues that the consolidation observed in Bitcoin’s price towards the end of last year sets the stage for a robust start to 2024. “After the typical mid-to-end December consolidation, Bitcoin is poised to break out on a robust beginning-of-the-year buying flow,” the report states.

A significant factor in this predicted rally is the change in sentiment among institutional investors. Contrasting with the bearish outlook of last year, the current market dynamics have created a situation where institutional investors, wary of missing out on potential gains, are expected to invest heavily as soon as the markets open in 2024.

“Institutional investors cannot afford to miss out on any potential rally again and, therefore, have to buy immediately when the markets open for trading in 2024,” Matrixport notes, expecting an immediate rally that could catch many investors off-guard.

The potential catalyst for this surge, according to Matrixport, is the anticipated approval of a spot ETF, which could be announced sooner than most traders expect. “A potential Bitcoin Spot ETF approval could be announced today or tomorrow, ahead of most traders’ expectations for approval on January 8, 9, or 10,” the report highlights.

This approval is seen not as a ‘sell-the-news’ event but as a legitimization of BTC as an asset class for institutional portfolios, potentially leading to significant price increases.

More Reasons To Be Bullish In 2024

Matrixport also points to the decreased availability of Bitcoin on exchanges as a factor that might amplify this rally. “70% of the outstanding Bitcoins have remained ‘unmoved‘ during the last twelve months,” the report observes, indicating a scarcity of BTC in the market that could drive prices higher.

Looking ahead, Matrixport references the upcoming halving cycle in April 2024 as another reason for a potential supply shortage and consequent price spike. They draw parallels with commodity markets, where forced buying in the face of reluctant selling can lead to dramatic price increases.

Furthermore, the report draws attention to historical trends, noting that Bitcoin has shown strong performance during halving cycles, which coincide with the US election cycle. “The average return for Bitcoin during the 2020, 2016, and 2012 years was +192%,” Matrixport states, setting a long-term target of $125,000 for BTC based on their ‘one-year-new-high’ indicator.

Finally, the report comments on the current state of the funding rate, which remains elevated, indicating bullish sentiment among crypto traders. “This morning, the funding rate is reaching a new high at +66%,” the report observes, suggesting that the futures market is exerting upward pressure on Bitcoin’s spot market price.

“This is how the futures market is squeezing the spot market and will likely lift BTC above our $50,000 target level for January 2024, which appears reasonably achievable. We could trade above $50,000 by the end of this week,” Matrixport states in conclusion, setting a high bar for BTC’s performance in the first week of 2024.

At press time, BTC traded at $45,757.

Bitcoin price
BTC price, 1-day chart | Source: BTCUSD on TradingView.com

Featured image created with DALL·E 3, chart from TradingView.com

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *