Matrixport Predicts Bitcoin to Hit $50,000 This Month; Here’s Why

After witnessing a tumultuous period, bitcoin (BTC) has continued to recover in recent months, with its price surging past $45,000 on the first day of 2024.

However, cryptocurrency analysts at Matrixport are even predicting a more bullish outlook for the flagship cryptocurrency in the coming weeks.

Matrixport Predicts BTC Surge to 50K in January 

In a recent blog post, Matrixport forecasted an explosive start to 2024 for the digital asset, with a potential price surge to $50,000 this month.

“We expect an immediate rally that once again catches investors off-guard,” Matrixport said in the report.

According to Matrixport, this bullish outlook will be driven by several factors. Among them is the potential imminent approval of a Bitcoin spot exchange-traded fund (ETF) in the US.

The Catalysts 

With the possibility of a Bitcoin spot ETF being approved earlier than expected this month, Matrixport predicted that the approval of this investment vehicle will significantly increase bitcoin’s price.

As stated by the crypto trading firm, a Bitcoin spot ETF approval would legitimize Bitcoin as an asset class for institutional portfolios, thereby potentially leading to increased demand and price of the digital asset.

Matrixport, however, pointed out that an ETF approval is unlikely to trigger a “sell the news” event. 

Another factor that could lead to a bitcoin boom this month is its supply shortage, according to Matrixport. 

The firm stated that with 70% of BTC unmoved over the past 12 months on wallets, the amount of digital assets immediately available to buyers has reduced, which could be a major driver of the price surge. 

Additionally, Matrixport pointed out that mining firms tend to limit the supply of BTC around the halving events – which further adds to the supply shortage. Bitcoin’s next halving is expected to happen sometime in April 2024.

“Bitcoin price move this year could surprise everybody,” Matrixport stated in its report.

At the time of writing, BTC trades at $45,715, representing a 7.15% price increase in the last 24 hours.