Crypto financial services firm Matrixport has reaffirmed its bullish projection on the future trajectory of the Bitcoin price. While at it, the firm also mentioned when this is likely to happen based on past cycles and historical performance.
When Bitcoin Will Hit $125,000
In a report that dwelled on the sustainability of the bull market in 2024, Matrixport mentioned that Bitcoin will hit $125,000 by the end of 2024. Before then, they project that Bitcoin will hit $63,140 by April 2024. April 2024 is scheduled to be when the Bitcoin Halving will take place and this event is expected by many to kickstart the bull market.
The basis for their $125,000 projection stems from the fact that the years in which Bitcoin Halving took place are generally bullish. Historically, Bitcoin saw a 186%, %126, and 297% gain in 2012, 2016, and 2020 respectively. As such, they expect that something similar will happen in 2024.
Another point that they used to back up their projection is the fact that miners tend to hoard their Bitcoin rewards before each halving. There is usually a significant price increase after the event (about 200%). Therefore, they expect that this time won’t be different, with Bitcoin able to hit the $125,000 price level if that happens.
Meanwhile, the macro factors seem to be aligning for this parabolic rally in 2024. Based on Matrixport’s inflation model, there could be a decline in inflation, which could lead to a cool-off in the hike of interest rates. If that happens, it would undoubtedly be bullish for Bitcoin, considering that the Fed’s hawkish stance has been known to affect Bitcoin’s price.
BTC price still holding above $41,000 | Source: BTCUSD on Tradingview.com
The Bull Market Already Began
Contrary to public opinion, Matrixport believes that the bull market already began this year. They noted that, just as in past cycles, the bull market has always lasted for three years after every bear market. Based on this “simple cycle analysis,” they project that this bull market will also last for three years. Going by this assumption, the bull market will run until 2025.
The financial services firm had previously shared a report on how the fifth bull market will unfold. This cycle, which they assert began on June 22, 2023, has been said to be likely driven by expectations of institutional adoption. This is likely a reference to the Spot Bitcoin ETFs that could potentially launch soon.
Their projections so far seem to be on track. As part of how this bull market will unfold, they had affirmed that Bitcoin will hit $45,000 between November this year and April 2024. That could happen sooner than later, as the flagship cryptocurrency recently broke above $40,000.
Featured image from Investing News Network, chart from Tradingview.com
Credit: Source link
