The report by Matrixport revealed that the fifth Bitcoin bull market officially began on June 22, 2023, with further gains anticipated amid momentum gain.
The fifth Bitcoin (BTC) bull run that is expected to go parabolic after next year’s halving event has attracted notable institutional investors. More investors fleeing the market uncertainties presented by ongoing conflicts in the Middle East and the Russian invasion of Ukraine have opted for Bitcoin which has outperformed all other traditional investment instruments YTD.
According to the latest market data provided through TradingView, Bitcoin price has gained about 104 percent since January compared to a 1 percent decline in Dow Jones and a 7 percent rise in the S&P 500 index. The impressive performance of Bitcoin is by no means a stroke of pure luck as the global banking industry has been slowly slipping into bankruptcy. Additionally, the high inflation coupled with rising interest rates has become unfavorable for investors to hold on to fiat currencies.
Matrixport on Bitcoin Price Action
According to a recent report conducted by Matrixport, one of the leading digital assets platforms, Bitcoin’s price is already in the early stages of the fifth bull market that was triggered by huge demand from institutional investors. According to Matrixport, Bitcoin price is well positioned to hit $125,000 by December 2024. Meanwhile, the firm expected Bitcoin price to hit $45k in the ongoing rally followed by a quick correction before revisiting its ATH and entering the price discovery phase.
The report highlighted that the ballooning US debt amid high inflation is a signal for most institutional investors to flee to the Bitcoin market. Moreover, the fast growth of the BRICS alliance is a testimony to the high rate of de-dollarization that has pushed investors to digital assets.
“Bitcoin’s characteristics, which were traditionally associated with assets like Gold and other safe-haven investments such as Treasury bonds, have led institutions to consider Bitcoin for diversifying their asset allocation. It is not a coincidence that Bitcoin is surging at a time when the United States’ debt-to-GDP ratio is reaching unsustainable levels,” the report noted.
While Matrixport thinks the perfect Bitcoin entry was in October 2022, the analysts are confident that more gains lie ahead. Moreover, the United States Securities and Exchange Commission (SEC) is yet to approve any of the Bitcoin spot exchange-traded funds (ETF), which are expected to channel billions of dollars into the cryptocurrency market.
Market Outlook
The Bitcoin industry has grown to a mature market that can survive without the support of any specific fiat currency. Trading around $34k on Friday, Bitcoin price has been consolidating in a bullish pennant formation on the hourly time frame, suggesting an imminent breakout towards $38k. However, the ultimate bullish trigger is the fourth Bitcoin halving which is expected in mid-April, as it will make the mother coin even more scarce amid heightened demand.
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