As Bitcoin hovers near the $35,000 mark, igniting a widespread surge in the crypto market, a new report hints at more gains in the offing for the flagship crypto asset.
Matrixport, the digital asset trading firm established by Wu Jihan, co-founder of Bitmain, believes the current bull market actually initiated in June this year when Bitcoin achieved a fresh one-year high. Historically, this signal has consistently marked the start of significant gains, with an average return of more than 310%.
Drawing upon this signal, Matrixport has projected that Bitcoin could potentially reach $125,000 by December 2024, more than six months after the halving.
Matrixport had previously foreseen that October would be a strong month for Bitcoin, a prediction that, so far, has proven to be fairly accurate.
The crypto asset was up by more than 25% since the beginning of the month when it was trading near $27,000 to the press time price of around $34,000. Bitcoin experienced a momentary surge, reaching $35,000 on October 24, thereby achieving its highest level in 17 months. However, Matrixport’s target suggests that it could hit $45k by year-end, which represents a nearly 33% rise from the current level.
The next target of $63,000 stands somewhere near mid-2024, paving the way for the $125,000 projection to come into play.
Matrixport also highlighted that the latest Bitcoin bull market appears to be largely fueled by the expectations of institutional adoption.
“Bitcoin’s characteristics, which were traditionally associated with assets like Gold and other safe-haven investments such as Treasury bonds, have led institutions to consider Bitcoin for diversifying their asset allocation. It is not a coincidence that Bitcoin is surging at a time when the United States debt-to-GDP ratio is reaching unsustainable levels.”
A seemingly similar prediction was made by Bitmex founder Arthur Hayes, who said that Bitcoin will reach $1 million by 2030. He argued that mounting geopolitical tensions and wartime inflation could spur the next bull run.
He also substantiated this forecast by explaining that central banks, including the Federal Reserve, confronting challenges in maintaining control over interest rates, might resort to adopting policies aimed at stabilizing rates at levels considered “politically expedient.”
