2023-10-26 15:10 |
Bitcoin’s (BTC) price is expected to rally to as high as $125,000 by the end of 2024, crypto services provider Matrixport said in an Oct. 26 note shared with CryptoSlate.
This prediction is based on the institution’s belief that the market has entered the fifth phase of Bitcoin’s bull market, primarily driven by “the expectations of institutional adoption.”
“Bitcoin’s characteristics, which were traditionally associated with assets like Gold and other safe-haven investments such as Treasury bonds, have led institutions to consider Bitcoin for diversifying their asset allocation,” Markus Thielen, head of research and strategy at Matrixport, said.
BTC’s bull market commenced in June when the digital asset reached a yearly high for the first time. Around this period, several traditional financial institutions applied for a spot BTC exchange-traded fund (ETF) application with the Securities and Exchange Commission (SEC), triggering an upward price movement for BTC. “This signaled the end of the ‘crypto winter’ period,” Thielen said.
“Historically, when this signal was triggered, Bitcoin has delivered, on average, returns of +310%. Based on this signal, we estimated that Bitcoin could reach $125,000 by December 2024,” Thielen added.
U.S. investors are fueling BTC rise.A separate note from Matrixport on Oct. 25 suggested that U.S. traders fuel BTC’s current bull run as most gains are accumulated during U.S. trading hours.
Over the past month, the flagship digital asset has seen its value rise by more than 25% after optimism surrounding an ETF approval reached new highs.
“This is a significant development and shows that U.S. institutions and U.S. investors are embracing the news that a U.S.-listed spot bitcoin ETF appears imminent,” Thielen said.
During this period, the market has had to deal with fake reports that stated that the SEC had approved BlackRock’s ETF application and renewed skepticism over crypto’s role in funding terrorism.
The Matrixport’s note concluded that U.S. traders’ and institutions’ buying power is a “magnitude larger” than traders in other regions, including Asia.
The post Bitcoin already in fifth bull market, to reach $125,000 by December 2024 – Matrixport appeared first on CryptoSlate.
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