Matrixport Predicts Bitcoin Price Plunge to $36K Following Grayscale’s Significant Maneuver
Bitcoin experienced a tumultuous week, with its value dropping below $40,000 for the first time since December. It hit a low of $38,680 on January 23, 2024. However, Bitcoin has managed to recover and is now standing at $40,070 with a 0.3% increase in the past 24 hours. Amidst this market volatility, Matrixport’s research provides interesting insights.
According to Matrixport’s latest research, which was revealed on January 26, Bitcoin is projected to experience a temporary dip, with a predicted support level of $36,739. Despite TradeFi’s cautious stance on a Bitcoin spot ETF and GBTC investors capitalizing on profits, Matrixport believes that the market’s liquidity constraints and macroeconomic factors will pave the way for a rebound from this crucial support level.
Matrixport’s research challenges the prevailing narrative, as it foresees a dip to $36,739 for Bitcoin. This potential correction is attributed to TradeFi’s reserved approach to Bitcoin spot ETFs and the ongoing profit-taking trend among GBTC investors. The report emphasizes that the overall liquidity and macro environment remain supportive, leading to an eventual rebound from the support level.
In the midst of the excitement surrounding the approval of spot-based Bitcoin ETFs, Grayscale, a prominent crypto asset manager, strategically adjusted its position. Following the approval, Grayscale transferred a significant amount of 103,134 BTC ($4.23 billion) to Coinbase Prime. This move elicited varied reactions within the crypto community.
Matrixport’s earlier prediction of a Bitcoin surge to $50,000 after the SEC approval of Bitcoin spot ETFs on January 10 sparked discussions. However, Bitcoin’s current value of $40,000 defies Matrixport’s initial optimism. The revised forecast urges caution and suggests a potential dip to $36,739 before a subsequent rise.
Overall, the crypto market is currently divided as Bitcoin grapples with the uncertainties surrounding ETFs. The movement of Grayscale’s BTC holdings and Matrixport’s research provide valuable insights into the market’s dynamics.