Research conducted by Matrixport anticipates that the price of Bitcoin will surpass the $50,000 threshold in January 2024, provided that the approval of spot Bitcoin ETFs by the U.S. SEC becomes a reality.
The firm predicts a 95% probability of spot Bitcoin ETF approval in January 2024.
Matrixport’s research highlights the growing anticipation surrounding the SEC’s decision on spot Bitcoin ETFs, suggesting that the asset could soar above $50,000 if approved.
The report highlights historical parallels, such as the launch of Bitcoin Futures by CME Group in 2017, which saw a significant price escalation preceding the event. During the six-to-seven-week window between the confirmation of the Bitcoin futures launch and the commencement of trading, prices soared by almost 200%.
While Matrixport initially projected a consolidation period from December 8 until the end of the year, the research suggests that Bitcoin may now be poised for a breakout.
Historical data indicates that Bitcoin typically experiences gradual price increases of around +3% from Christmas to New Year. However, 2011, 2013, and 2020 outliers saw Bitcoin prices rise as much as +22%.
As the SEC reviews spot Bitcoin ETF applications, Matrixport notes that TV commercials from multiple ETF applicants are already being rolled out, which is expected to support BTC further. The intensity of these commercials is expected to heighten during the Christmas season as applicants race to become the dominant player in the ETF market.
Matrixport firmly believes that if spot Bitcoin ETFs receive approval by then, BTC has high chance of breaking higher during Christmas and reaching the significant milestone of $50,000.
Charles Gasparino, a senior correspondent at Fox Business Network, has provided an intriguing update on spot Bitcoin Exchange Traded Funds (ETFs).
As per his recent tweet, firms express confidence in the U.S. Securities and Exchange Commission (SEC) approving the first spot Bitcoin ETF post January 8, 2024.
However, there is an anticipated twist: shares can only be acquired with cash, unlike traditional ETFs. This precautionary measure stems from the SEC’s concerns regarding potential money laundering through ETFs, demonstrating a cautious approach toward this emerging asset class.