Crypto financial service provider Matrixport has reaffirmed its bullish projection on the future trajectory of the Bitcoin price. While in progress, the company also mentioned when this was likely to happen based on previous cycles and historical performance.
When Bitcoin will reach $125,000
In a report Reflecting on the sustainability of the bull market in 2024, Matrixport said Bitcoin will reach $125,000 by the end of 2024. They predict that before then Bitcoin will strike $ 63,140 by April 2024. April 2024 is scheduled for the Bitcoin halving will occur and many expect this event to boost the bull market.
The basis for their $125,000 projection comes from the fact that the years in which Bitcoin Halving occurred are generally bullish. Historically, Bitcoin saw gains of 186%, 126% and 297% in 2012, 2016 and 2020 respectively. They expect something similar to happen in 2024.
Another point they used to support their projection is the fact that miners tend to hoarding their Bitcoin rewards before each halving. Usually there is a significant price increase (about 200%) after the event. Therefore, they expect that this time will be no different, with Bitcoin able to reach the $125,000 price level if that happens.
Meanwhile, macro factors seem to be focusing on this parabolic rally in 2024. Based on Matrixport’s inflation model, there could be a decline in inflation, which could lead to a cooling of the interest rate hike. If that happens, it would undoubtedly be bullish for Bitcoin given the Fed’s hawkish stance which is known to influence the price of Bitcoin.
BTC price still holding above $41,000 | Source: BTCUSD on Tradingview.com
The bull market has already started
Contrary to public opinionAccording to Matrixport, the bull market has already started this year. They noted that, as in previous cycles, the bull market following each bear market has always lasted three years. Based on this “simple cycle analysis”, they predict that this bull market will also last three years. If we follow this assumption, the bull market will continue until 2025.
The financial service provider had before shared one report on how the fifth bull market will unfold. This cycle, which they say began on June 22, 2023, is said to be likely driven by expectations of institutional adoption. This is probably a reference to the Spot Bitcoin ETFs that could possibly start soon.
Their projections so far appear to be on target. As part of how this bull market will unfold, they have confirmed that Bitcoin will reach $45,000 between November of this year and April 2024. That could happen sooner rather than later, as the flagship cryptocurrency recently broke above $40,000.
Featured image from Investing News Network, chart from Tradingview.com