A new report from Matrixport predicts that Bitcoin (BTC) could reach a target of $63,000 by March 2024.
In its report, Matrixport identified four key catalysts that could propel Bitcoin to new heights, including the recent approval of spot Bitcoin ETFs, the upcoming halving event, and interest rate cuts.
Since the SEC greenlighted spot Bitcoin ETFs on January 10, there has been a growing demand for these products.
Earlier this week, daily spot Bitcoin ETF trading volume amounted to nearly $2 billion, the highest level since the first day of trading on January 11.
As reported earlier, spot Bitcoin ETFs witnessed a substantial influx of approximately $2.3 billion last week, nearly doubling the previous week’s inflow of $1.2 billion.
These inflows accounted for almost half of the total net inflow since the inception of BTC ETFs, which currently stand at approximately $5 billion.
Bitcoin Halving to Further Drive Bitcoin Price Higher
The Matrixport report noted that the Bitcoin Halving event, slated for 2024, will further drive the price of BTC higher by reducing supply.
The Bitcoin halving is a pre-scheduled event that reduces the reward for mining new blocks by half, effectively slowing the rate at which new bitcoins are created.
Historically, halving events have been precursors to substantial price rallies, attributed to the reduced supply of new Bitcoins entering the market.
Matrixport released a new report stating that BTC’s goal of reaching $63,000 in March 2024 is achievable. Catalysts include: the approval of a Bitcoin spot ETF, the Bitcoin halving, expectations of an interest rate cut after the Fed’s FOMC meeting, and the U.S. presidential…
— Wu Blockchain (@WuBlockchain) February 23, 2024
The report also mentioned that expectations of interest rate cuts following the Federal Reserve’s Federal Open Market Committee (FOMC) meetings could tilt the scales in favor of riskier assets like Bitcoin.
Lower interest rates typically reduce the appeal of yield-generating investments, making growth-oriented assets more attractive.
Furthermore, the upcoming US presidential elections and policy uncertainty could also affect Bitcoin prices.
Such periods have often seen investors flocking to alternative assets like Bitcoin as a hedge against potential economic policy shifts.
However, the impact of such political events on cryptocurrency markets is quite complex, making it challenging to make a clear prediction.
Bitwise CIO Sees Bitcoin Surpassing $80,000
Bitwise Chief Investment Officer Matt Hougan also expects Bitcoin to soar beyond $80,000 this year thanks to the recent success of spot ETFs.
In a recent interview, Hougan highlighted the sustained demand for ETFs, which has exceeded his expectations.
He said that this wave of interest from traditional finance, akin to Bitcoin’s IPO in the US market, will lead to further institutional investment and drive up prices.
“Think of the ETF launch as Bitcoin’s IPO in the U.S. market. It has just unleashed a huge wave of interest from traditional finance, and it has exceeded my expectations.”
Likewise, analysts at investment firm Bernstein expect Bitcoin to resume its upward trajectory, surpassing its previous all-time high of $69,000 and potentially reaching $70,000 this year.
The analysts have expressed confidence in the cryptocurrency’s risk-reward profile, stating that no significant challenges are anticipated to impede its ascent.
Meanwhile, Anthony Scaramucci, the founder and managing partner of hedge fund SkyBridge, has suggested that the price of Bitcoin could potentially reach $170,000 in the coming year.
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