Asia-based crypto trading company Matrixport, Bitcoin He made an interesting prediction about the price, stating that the price could reach $ 50,000 before the end of January.
The prediction, first made on December 21, proved largely accurate, with Bitcoin price consolidating over the holiday period before its latest rally. Matrixport detailed the factors that will continue to drive BTC’s rise in 2024, stating why the $50,000 level is possible.
matrixport, outlined four factors that will drive Bitcoin’s ongoing rally. The first of these factors is the pending approval of spot BTC ETFs in the United States. Contrary to expectations that the approval would be given between January 8-10, the company expects the approval to be given earlier.
According to the company, the possible approval would push the BTC price up significantly and would not be a “news sell event” as many expected. The firm predicts that the ETF will create an opportunity for more institutions to gain exposure to BTC and realize that it can be used as collateral to purchase more assets.
According to Matrixport, the second factor is the current shortage in supply. Last year, close to 70% of Bitcoin supply remained dormant and its supply on exchanges is decreasing. Many investors moved their assets to cold wallets after the FTX crash.
Koinfinans.com As we reported, the biggest expectation of Matrixport and the participants in the sector is the halving event, which is expected to take place in April.
Finally, the US Federal Reserve’s shift towards a dovish stance means more capital will flow into the markets to look for investment opportunities. With risky assets like crypto performing well over the past year, institutional investors will likely seize the opportunity and not miss out on another rally.