By
Bena Ilyas
May 9th, 2024
Matrixport says BTC price may even hit the $56,000 mark by the end of the year.
Earlier in the year, crypto financial services company Matrixport had predicted that the $45,000 mark would be the maximum limit to BTC price surge in 2023. However, the firm is now revisiting the old prediction as a lot has changed since that time.
Citing what the Bitcoin market calls the Fear of Missing Out (FOMO) among other factors, Matrixport says BTC price may even hit the $56,000 mark by the end of the year.
The latest forecast comes as Bitcoin recently saw its market share jump to 52.1%, even as its trading volume added significantly enough to hit $29 billion in the past 24 hours.
Matrixport Names Reasons for New BTC 2023 Forecast
In a recent post on X (formerly Twitter), Matrixport has explained why there is an ongoing FOMO sentiment in the market. The firm notes first that Bitcoin futures funding rates are “abnormally high” at the moment. And if that is not enough reason to encourage traders to buy, there is also high anticipation for the U.S. Securities and Exchange Commission (SEC) to approve a BlackRock spot Bitcoin exchange-traded fund (ETF).
According to Matrixport’s report, if only 10%-20% of gold ETF investors were to diversify their investments into Bitcoin, somewhere between $12-24 billion would be added to the Bitcoin ETF.
Interestingly, even the above estimation is considerably a modest one. That is because the market cap of the Grayscale Bitcoin Trust (GBTC) has once hit a high of $44 billion.
Matrixport also mentioned how the US registered investor advisor (RIA) community – a 15,000-strong group – manages around $5 trillion. The firm says an investment of just 1% from RIA could also potentially add around $50 billion in inflows to Bitcoin.
As Coinspeaker earlier reported, BlackRock filed its updated application for a spot Bitcoin ETF in early July. However, the SEC continues to stall the approval process, even as many other applicants patiently wait in line as well. Despite the continued wait, the crypto community is rife with the expectation that the market will soon experience a massive influx of institutional funds. For now, though, Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC) has maintained that there is no rush about reviewing these applications. He insists that the agency will carry out a thorough review and deliberation before coming out with a decision.