Recently, the crypto financial services platform Matrixport made a bold prediction regarding the price of Bitcoin, stating that it will rise to $63,000. This forecast comes after their previous prediction of BTC reaching $50,000 by the end of January did not materialize. Despite the ambitious nature of this new target, Matrixport believes it is attainable based on various factors.
One significant factor contributing to the potential surge in Bitcoin’s price is the approval of Spot Bitcoin ETFs over a month ago. These ETFs have played a crucial role in the resurgence of BTC even before their approval. Fund issuers have been accumulating significant amounts of Bitcoin due to the impressive demand for these ETFs. In fact, Bitcoin maximalist Samson Mow suggested that BTC would have experienced a 20% decline without the presence of these ETFs.
Trading firm QCP Capital has expressed similar sentiments to Matrixport, indicating that Bitcoin could reach as high as $69,000 thanks to the impact of Spot Bitcoin ETFs. They also highlighted the importance of genuine flow from the actual ETFs in determining whether BTC will revisit its all-time high. The impressive net inflows of $2.8 billion during the first 21 trading days demonstrate the strong demand for these funds.
Apart from the Spot Bitcoin ETFs, Matrixport pointed out other factors that could propel Bitcoin to $63,000. The upcoming Bitcoin Halving, scheduled for April, is expected to create substantial bullish sentiment around BTC. Historically, Bitcoin has experienced significant price gains leading up to halving events, and Matrixport anticipates a similar trend this time around.
Matrixport also mentioned the potential impact of interest rate decisions by the Federal Reserve and the US presidential election on Bitcoin’s price. While the Federal Reserve is projected to cut interest rates as inflation cools, the exact impact on Bitcoin’s price remains uncertain. Similarly, the upcoming presidential election in November 2024 may not have an immediate effect on Bitcoin’s trajectory.
The prediction of Bitcoin rising to $63,000 by Matrixport highlights the optimism surrounding the cryptocurrency. With the support of factors such as Spot Bitcoin ETFs, the Bitcoin Halving, interest rate decisions, and the US presidential election, the path to $63,000 may not be as far-fetched as it seems. However, it is essential to exercise caution and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.