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Matrixport Doubles Down on $45,000 Bitcoin Prediction as FOMO Grips Crypto Market
This forecast comes as Bitcoin’s market share has surged to 52.1%, and its trading volume has seen a significant uptick, reaching $29 billion in the past 24 hours.
“Abnormally High Bitcoin Futures Funding Rates”
Matrixport attributes the renewed FOMO sentiment to the abnormally high Bitcoin futures funding rates, which suggest that many traders are engaging in panic buying.
Earlier this year, Matrixport set a year-end target of $45,000 for Bitcoin. With the resurgence in Bitcoin price on the heels of growing expectation of spot Bitcoin ETF approval, the analyst firm has doubled down on its earlier prediction
The company suggests that Bitcoin’s price could experience a further boost if the U.S. Securities and Exchange Commission (SEC) approves a BlackRock spot Bitcoin exchange-traded fund (ETF).
Matrixport’s report indicates that if 10%-20% of gold ETF investors decide to diversify their investments into Bitcoin, it could result in potential inflows of $12-24 billion into the Bitcoin ETF. Notably, this estimate is considered relatively conservative, given that the market cap of the Grayscale Bitcoin Trust (GBTC) has previously reached a peak of $44 billion.
Spot Bitcoin ETF Approval Could Send BTC Price to $56,000
The anticipation of a spot Bitcoin ETF approval has already made waves in the market
BlackRock filed its application for a spot Bitcoin ETF, which subsequently led to a significant price increase for Bitcoin. Should the approval materialize, Matrixport estimates that Bitcoin’s price could potentially rally to $56,000.
Despite the SEC’s recent delay in reviewing ETF applications, there remains a growing belief that the cryptocurrency market could experience a significant influx of institutional funds
Matrixport points out the potential impact of the 15,000-strong U.S. registered investor advisor (RIA) community, which manages around $5 trillion. Even a modest 1% allocation recommendation for Bitcoin from this group could bring about around $50 billion in inflows.