Matrixport has released a report today predicting a Bitcoin price surge to $50,000 this month, citing various factors as contributors to this bullish outlook. The key elements include the potential approval of a Bitcoin Spot ETF, the momentum from institutional buying, and historical trends.
According to Matrixport’s analysis, Bitcoin is poised for a strong breakout in the early days of the new year, following a typical consolidation period in mid-to-end December. This surge is expected to be fueled by an influx of institutional investors eager to capitalize on potential market rallies.
The report underscores the significance of institutional investors, anticipating that their desire to not miss out on potential market upswings will result in a rapid and immediate buying flow when trading resumes in 2024.
As of now, Bitcoin has surpassed the $45,000 mark for the first time since April 2022, trading around $45,200 at the time of writing with a 7% rise in the last 24 hours.
Spot Bitcoin ETF Approval
A notable focus is on the speculation surrounding the imminent approval of a Bitcoin Spot ETF by the US SEC, with Matrixport suggesting that the announcement might be imminent, potentially even within the current week.
Contrary to the notion of a ‘sell-the-news’ scenario, Matrixport argues that approval would confer legitimacy on Bitcoin as a valuable asset class for institutional portfolios.
The report underscores a potential risk on the upside, emphasizing the scarcity of available Bitcoin on exchanges due to many holders adopting cold-storage options. Matrixport estimates that as much as $10 billion in fiat money might face challenges in finding sufficient Bitcoin on exchanges for ETF exposure, potentially leading to a supply shortage.
Additionally, Matrixport factors in the upcoming Bitcoin halving cycle expected in April 2024, along with historical trends that suggest robust performance during election years. These elements contribute to the overall bullish outlook presented in Matrixport’s analysis.
