- October 26, 2023
- Posted by: [email protected]
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Matrixport, a prominent crypto financial services firm, has reaffirmed its earlier forecast of Bitcoin’s price surging to $45,000 by the year’s end. This reiteration comes at a time when the crypto market is witnessing an unprecedented Fear of Missing Out (FOMO) sentiment.
As the crypto industry remains in the grip of fervent excitement, Bitcoin’s market dominance has soared to an impressive 52.1%. In the past 24 hours, its trading volume reached a staggering $29 billion, demonstrating the robust interest in the flagship cryptocurrency.
Matrixport attributes the resurgence of FOMO to the abnormally high funding rates in Bitcoin futures. These elevated rates indicate that a considerable number of traders are rushing to buy Bitcoin, driven by fear of missing out on potential profits.
Earlier this year, Matrixport set a year-end target of $45,000 for Bitcoin. With Bitcoin’s recent price resurgence, coupled with growing optimism surrounding the approval of a spot Bitcoin Exchange-Traded Fund (ETF), the analytical firm is unwavering in its prediction.
The company postulates that Bitcoin’s price may receive a further boost if the U.S. Securities and Exchange Commission (SEC) greenlights a BlackRock spot Bitcoin ETF. This potential approval has already caused ripples in the market.
Matrixport’s report suggests that if just 10% to 20% of investors in gold Exchange-Traded Funds (ETFs) decide to diversify their holdings into Bitcoin, it could result in a substantial influx of $12 to $24 billion into Bitcoin ETFs. Remarkably, this estimate is deemed quite conservative, considering that the market capitalization of the Grayscale Bitcoin Trust (GBTC) once reached an all-time high of $44 billion.
The anticipation of a spot Bitcoin ETF approval has significantly influenced market dynamics. BlackRock’s application for a spot Bitcoin ETF, in particular, spurred a remarkable surge in Bitcoin’s price. Should the SEC grant approval, Matrixport envisions Bitcoin’s price potentially rocketing to $56,000.
Despite the SEC’s recent postponement of ETF application reviews, there is an escalating belief in the crypto sphere that institutional funds may soon flood into the market. Matrixport highlights the potential influence of the 15,000-strong U.S. registered investor advisor (RIA) community, managing a colossal $5 trillion. Even a conservative 1% allocation recommendation for Bitcoin from this community could trigger approximately $50 billion in capital inflows.
As FOMO tightens its grip on the crypto market and Bitcoin’s fundamentals continue to strengthen, Matrixport remains resolute in its prediction that Bitcoin could reach the coveted $45,000 mark by the year’s end. The imminent decision on a BlackRock spot Bitcoin ETF and the prospect of institutional investment inflows add further fuel to this bullish outlook.
