Matrixport, a significant player in the cryptocurrency world, has projected an optimistic outlook for Bitcoin’s future. They’ve predicted a surge for the leading digital currency, with Bitcoin potentially reaching a $125,000 valuation by the close of 2024.
Decoding Matrixport’s Forecast
Bitcoin’s historic performance is key to understanding this positive outlook. Past trends show that whenever Bitcoin reaches a 12-month high after a year of a bear market, it often precedes a period of rapid growth.
This pattern was recently noted when Bitcoin’s price exceeded $31,000 for the first time since June 2022. Similar episodes took place in August 2012, December 2015, May 2019, and August 2020.
Markus Thielen, leading the research and strategy department at Matrixport, recently noted an interesting trend. On June 22, 2023, Bitcoin reached a new one-year high, a signal that historically signifies the termination of bear markets and the commencement of bullish ones.
If this trend continues, Bitcoin prices could witness a 123% increase over the next year and a 310% surge over the next eighteen months. Based on this trajectory, Bitcoin’s value could reach $65,539 in twelve months and an impressive $125,731 in a year and a half.
Accounting for Extraordinary Bull Markets and Bitcoin Halving
Thielen, however, discounted the 2012 bull market and its subsequent 5,285% price increase, considering it an extraordinary event that distorted the usual market trends. Another crucial aspect that Matrixport takes into account is the influence of Bitcoin’s halving events.
Typically, Bitcoin experiences a sharp uptrend in the 12-18 months following the halving of mining rewards. The next, or the fourth halving, is slated to take place in early 2024, reducing the Bitcoin rewards from 6.5 BTC to 3.25 BTC per block. With Bitcoin’s value standing at $30,906 at the time of writing this piece, Matrixport’s bullish sentiment suggests an encouraging trajectory for Bitcoin.
Source: https://coinpedia.org/bitcoin/bitcoin-price-prediction-matrixport-predicts-btc-price-target-for-2024/