As the key moment of approval for Bitcoin spot ETF approaches, Bitcoin price reached $45,000 this morning, and the cryptocurrency financial service platform Matrixport predicts that Bitcoin price will significantly rise to $50,000 in January.
With the approval of the Bitcoin spot ETF drawing near, market attention is continuously increasing. On December 30th, citing anonymous sources, Reuters revealed that the U.S. Securities and Exchange Commission (SEC) may approve the first batch of Bitcoin spot ETFs this Tuesday or Wednesday. However, Fox Business reporter Eleanor Terrett stated this morning that the likelihood of approval this week is low, but there is still a chance in the following two weeks. This news seems to have a positive impact on the Bitcoin price, causing it to reach $45,000 this morning.
The cryptocurrency financial service platform Matrixport also predicted earlier today that the Bitcoin price will rise significantly in January, reaching $50,000. This prediction is based on market conditions and observations of investor behavior. Matrixport pointed out in its report that after consolidating in the latter half of December, Bitcoin is expected to have strong buying momentum in the new year. Institutional investors who previously held bearish views are expected to make immediate purchases when the market opens in 2024 to not miss out on potential gains.
Matrixport believes that the potential approval of the Bitcoin spot ETF may be announced earlier than expected next week, which could further drive up the price. Additionally, Matrixport believes that the approval will not be a “sell-the-news” event because the Bitcoin spot ETF will make Bitcoin a legitimate asset for institutional portfolios.
Meanwhile, Bitcoin holders are increasingly transferring their assets from exchanges to self-custody wallets, reducing the available trading volume on exchanges. In addition, mining companies may further limit supply around the halving period (expected in April 2024), leading to scarcity. Previously, Matrixport estimated that the Bitcoin spot ETF could bring in $24-50 billion of inflows, which could significantly increase the Bitcoin price in a supply-constrained market.
Finally, the report points out that Bitcoin has historically performed well during halving periods and U.S. election years. Market bullish indicators, such as the funding rate for Bitcoin reaching a new high this morning (+66% annualized), further support the prediction of price increase. Taking these factors into account, Matrixport believes that Bitcoin could rise above the target level of $50,000 in January.
Bitcoin funding rate. Source: Matrixport report
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