Despite the recent Binance scandal, Matrixport, a leading digital asset financial services platform, predicts that Bitcoin could soar past $40,000 in December. This forecast comes amidst a period of significant volatility in the cryptocurrency market, with Bitcoin’s price fluctuating within a narrow range.
Matrixport’s prediction is based on potential inflows of as much as $24 billion if a BlackRock spot bitcoin exchange-traded fund (ETF) is approved. The firm believes that a conservative estimate of Bitcoin’s price, assuming that 10%-20% of gold ETF investors will take a stake in a spot Bitcoin ETF, is $42,000. However, with a larger influx of $50 billion, Bitcoin could potentially rally to $56,000.
The Digital Asset Platform Forecasts a Bullish Scenario for Bitcoin
The analyst anticipates a decline in bond yields to 2.60% over the next two years. This comes after the U.S. 10-year Treasury yield seemingly reached its cycle peak at 4.95% and is on the verge of revisiting the high from the previous year.
The Binance scandal, which saw the U.S. Securities and Exchange Commission (SEC) file a lawsuit against the platform for alleged violations of federal securities laws, has had a significant impact on the cryptocurrency market. The SEC is seeking to ban Binance in the U.S., sending the price of Bitcoin down more than 5%. Despite this, Matrixport maintains its optimistic outlook for Bitcoin.
Matrixport’s prediction also takes into account the impending effects of the 2024 halving. Historically, Bitcoin’s price has seen significant increases following each halving event, which reduces the number of new bitcoins created and earned by miners. This reduction in supply, coupled with steady demand, often leads to a rise in Bitcoin’s price.
However, it’s important to note that while these predictions provide a potential path for Bitcoin’s price, the cryptocurrency market is highly volatile and influenced by a variety of factors. Hence, investors should proceed with prudence and undertake extensive research before finalizing their investment choices.
In conclusion, despite the turbulence in the crypto market due to the Binance scandal, Matrixport predicts a bright future for Bitcoin, with a potential to surpass $40,000 in December.
