Matrixport, a prominent digital asset financial services platform, recently released a bullish prediction indicating that Bitcoin (BTC) could skyrocket in value. According to their analysis, Bitcoin could surpass its previously established two-year peak and rise to $63,000 by next month.
This bold prediction stems from a confluence of factors that are likely to have a significant impact on the trajectory of Bitcoin's price in the coming weeks and months.
The rationale behind Matrixport's optimistic forecasts
The main driving force behind Matrixport's optimistic outlook is live trading of the Bitcoin Spot Exchange Traded Fund (ETF). According to the report, these spot ETFs have opened the door for more investors to participate in crypto trading through traditional financial channels.
Additionally, demand for these spot ETFs is increasing, with daily trading volumes reaching notable levels, indicating growing investor interest in Bitcoin as an asset class, which could lead to it becoming the flagship cryptocurrency. The transaction price could exceed $60,000 by next month, the report said.
Additionally, the impending Bitcoin halving event scheduled for April 2024 is expected to fuel further upward momentum in BTC price. Bitcoin halving results in a decrease in the rate of new BTC creation, which historically leads to a decrease in supply, which typically drives up Bitcoin's value.
Matrixport’s report also mentions the impact of macroeconomic factors on BTC price. Expectations for interest rate adjustments after the US Federal Reserve Board's Federal Open Market Committee (FOMC) meeting are expected to have a major impact.
Additionally, upcoming uncertainty surrounding the US presidential election could trigger market volatility, with investors turning to alternative assets such as Bitcoin to protect against potential changes in economic policy. There is a possibility.
Bitcoin price trends and expert sentiment
Bitcoin, on the other hand, experienced a nearly 10% rally over the past 14 days, but saw a significant retracement in the past week, dropping 2.2%. It is worth noting that despite this setback, the market capitalization of cryptocurrencies is still over $1 trillion.
The analyst known as Mags expressed overwhelmingly bullish sentiment on Bitcoin, noting that Bitcoin has “never been this bullish.” Mags City historical patterns and bullish technical signals reveal that BTC recently closed a weekly candlestick above the 0.618 Fibonacci level, a rare occurrence in the crypto's four-year cycle. It is.
#bitcoin I've never been so bullish
For the first time in history, BTC deviates from its four-year cycle by closing a weekly candlestick above the 0.618 level before the halving.
The best thing about this deviation is that it is in high demand among institutional investors and is a bullish deviation. pic.twitter.com/F9xpTbEZ1d
However, Galaxy Digital CEO Mike Novogratz warned of potential downside risks, saying regulatory setbacks and changes in market sentiment could push BTC prices in the $45,000 to $42,000 range. It was predicted that the price could fall.
Featured image from Unsplash, chart from TradingView
