Bitcoin Price Rally to Breach $50,000 This Month: Matrixport

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Jai Pratap

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Jai Pratap

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Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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January 2, 2024 01:12 EST

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Matrixport has predicted that the price of Bitcoin will jump to $50,000 this month based on several factors in a report released today.

According to Matrixport, this bullish trend is attributed to various factors, including the potential approval of a Bitcoin Spot ETF, institutional buying momentum, and historical trends.

Matrixport’s analysis indicates that after a customary mid-to-end December consolidation, Bitcoin is positioned for a robust breakout at the onset of the new year, driven by an anticipated influx of institutional investors eager to capitalize on potential rallies.

The report suggests that the importance of institutional investors not wanting to miss out on potential market upswings will lead to a swift and immediate buying flow when trading resumes in 2024.

Bitcoin surged past $45,000 mark today for the first time since April 2022. At the time of writing, Bitcoin is hovering around $45,200, with a 7% rise in the last 24 hours.

Spot Bitcoin ETF Approval

Of particular note is the speculation surrounding the impending approval of a Bitcoin Spot ETF by the US SEC, with Matrixport suggesting that the announcement could be made this week.

Matrixport dismisses the notion of a ‘sell-the-news’ event, contending that approval would legitimize Bitcoin as a valuable asset class for institutional portfolios.

The report also highlights the potential risk on the upside, emphasizing the scarcity of available Bitcoin on exchanges, as many holders have adopted cold-storage options.

Matrixport estimates that up to $10 billion in fiat money may struggle to find sufficient Bitcoin on exchanges for ETF exposure, potentially contributing to a supply shortage.

Furthermore, Matrixport factors in the upcoming Bitcoin halving cycle expected in April 2024, along with historical trends suggesting robust performance during election years.