Bitcoin's Impending Surge to $50,000 in January: Market Buzz and Predictions
As the critical moment for the approval of Spot Bitcoin ETFs draws nearer, the market's anticipation is reaching new heights. Recent indications from Reuters suggest that the U.S. Securities and Exchange Commission (SEC) might approve the first batch of Spot Bitcoin ETFs as early as this week. However, Fox Business reporter Eleanor Terrett hints at a slightly extended timeline, still keeping the possibility open for the coming weeks. Amidst these developments, Bitcoin's price has risen, breaching the $45,000 mark this morning.
https://twitter.com/EleanorTerrett/status/1741929328919679458
Matrixport, a leading cryptocurrency financial services platform, has made a bold prediction, foreseeing Bitcoin's price hitting the $50,000 mark in January.
https://twitter.com/realMatrixport/status/1742020661047140702
Further reading：Optimism Soars as Traders Bet on Bitcoin Hitting $50,000 by January 2023!
Institutional FOMO: A Catalyst for Bitcoin's Price Hike
Matrixport's report highlights the potential strong buying momentum for Bitcoin in the new year. Institutional investors, previously bearish, are expected to engage in immediate buying as the 2024 market opens, aiming not to miss out on potential uptrends.
Spot Bitcoin ETF: A Game-Changer, Not a 'Sell the News' Event
Matrixport anticipates an 'earlier than expected' approval of Spot Bitcoin ETFs, which could further fuel the price surge. Contrary to being a 'sell the news' event, the approval of Spot Bitcoin ETFs is believed to legitimize Bitcoin as an institutional asset class.
Supply Constraints and Potential Price Surge
With Bitcoin holders increasingly moving their assets to self-custody wallets, the available trading volume on exchanges is reducing. Coupled with potential supply restrictions from mining companies around the halving cycle (expected in April 2024), a market shortage is foreseen. Matrixport estimates that the approval of Spot Bitcoin ETFs could lead to an influx of $24-50 billion, significantly driving up Bitcoin prices in a supply-constrained market.
Further reading：Spot Bitcoin ETF: Uncertainties Loom as BlackRock Awaits SEC’s Green Light, FOX Analyst Predicts Approval Timeline
Historical Trends and Bullish Indicators
Historically, Bitcoin has shown strong performance during halving cycles and U.S. election years. The report cites market bullish indicators, such as the new high in Bitcoin's funding rate (+66% annualized), to support its prediction of a price increase. Combining these factors, Matrixport believes Bitcoin could surpass the $50,000 level in January.
