Matrixport Predicts a Bullish Run, Aims for $125,000 by December 2024

Matrixport, a Singapore-based cryptocurrency trading firm, has unveiled a bold prediction for Bitcoin, suggesting that it is already in the midst of its fifth bull market, which commenced on June 22, 2023. With this, Matrixport targets a substantial Bitcoin price of $125,000 by the end of December 2024, backed by strong reasoning and recent market dynamics.

Matrixport delved into the unique narratives that have historically fueled Bitcoin’s bull markets. The first Bitcoin surge was marked by its emergence as a novel payment method. It was followed by a second rally driven by enthusiasm in China, where Bitcoin gained recognition as an alternative currency. 

The third phase was characterized by the prevalence of initial coin offerings (ICOs), and the fourth witnessed the rise of decentralized finance (DeFi) and the non-fungible token (NFT) craze.

Matrixport states that the anticipation of institutional adoption primarily fuels the current fifth Bitcoin bull market. Bitcoin’s qualities, often likened to traditional assets like gold and safe-haven investments like Treasury bonds, have intrigued institutions seeking to diversify their asset portfolios.

This surge in institutional interest coincides with growing concerns regarding the U.S. debt-to-GDP ratio, which is reaching unsustainable levels. As a result, institutional players are looking for alternative assets to hedge against potential financial instability.

Matrixport’s analysis firmly positions the start of the fifth Bitcoin bull market in June 2023, a point in time when Bitcoin reached a new one-year high. Historical data indicates that Bitcoin’s average returns exceeded 310% when this specific signal was triggered. Based on this historical pattern, Matrixport has projected that Bitcoin could reach $125,000 by December 2024.

The report from Matrixport suggests that the optimal time to invest in Bitcoin is approximately 14-16 months before the next Bitcoin halving event. The study notably recommended the end of October 2022 as the perfect entry time for Bitcoin trading at $17,000. This strategic entry point anticipated the growing momentum and positive market sentiment that could lead to substantial gains.

Influence of U.S. Investors

Matrixport’s analysis, as of October 25, reveals that U.S. traders play a pivotal role in driving Bitcoin’s current bull run. A significant portion of the gains is accumulated during U.S. trading hours. 

Over the past month, Bitcoin’s value has increased by more than 25%, largely driven by the widespread optimism regarding approving a spot Bitcoin exchange-traded fund (ETF).

The notable push came amid heightened anticipation of the SEC’s approval of a U.S.-listed spot Bitcoin ETF. During this period, the crypto market had to contend with the spread of false reports regarding approving BlackRock’s ETF application and renewed concerns about cryptocurrencies’ involvement in funding illegal activities.

Matrixport’s analysis indicates that U.S. traders and institutions possess significantly greater buying power than their counterparts in other regions, such as Asia. The strong presence of U.S. investors in the crypto market contributes to the overall bullish momentum and the growing potential of reaching the projected $125,000 Bitcoin price by December 2024.