Matrixport Research Report: Bitcoin ETF Approval Expected to Drive Bitcoin Price to $50K
As we step into the year 2024, the world of cryptocurrency finds itself at a pivotal moment, filled with projections, debates, and the ever-anticipated approval of a Bitcoin ETF. With excitement and caution in the air, investors are preparing for potential shifts in the trajectory of Bitcoin.
Matrixport’s Bold Forecasts
In a recent report by financial powerhouse Matrixport, a wave of excitement has been ignited with their bold predictions of substantial growth for Bitcoin in 2024, along with a 95% chance of an approved spot ETF. Let’s take a sneak peek into their projections.
According to Matrixport Research, if the US Securities and Exchange Commission (SEC) gives the green light to ETFs, Bitcoin will reach the milestone of $50,000 in January 2024. With the firm deeming ETF approval highly likely, recent Bitcoin prices have surged to $44,000, while ETF applicants continue their discussions with the SEC.
Optimistic Scenarios
The report sheds light on Bitcoin’s potential surge to $50,000 once the ETF is approved. Recent interactions between investment manager Blackrock and the SEC further indicate preparations for the launch of a spot ETF.
On December 19, 2023, Grayscale had a meeting with SEC officials focused on converting Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. The discussions revolved around the proposed rule change for listing and trading Grayscale Bitcoin Trust shares. Similar engagements between Blackrock and the SEC hint at the possibility of an iShares Bitcoin Trust listing.
Diverging Perspectives: Bulls vs. Bears
While Matrixport’s optimistic viewpoint dominates the headlines, QCP Capital injects a note of caution. According to their perspective, there may be resistance zones between $45,000 and $48,500 after the ETF launch, with a potential retracement to $36,000 before another upward swing. This contrast in views illustrates the range of market expectations after the ETF launch, suggesting a possible “sell the news” dynamic.
SEC’s Battle over Approval Terms
Amidst the anticipation, discussions emerge regarding conditional approvals. Charles Gasparino of Fox Business suggests that the SEC’s confidence in approving a Bitcoin ETF may come after January 8, possibly with stringent measures to counter money laundering risks. The SEC finds itself in a balancing act, striving to enable ETFs while preventing illicit activities. This critical decision-making period between January 8 and 10 sets the stage for the unfolding drama.
The crypto community anxiously awaits the SEC’s verdict. Will the anticipated ETF approvals propel the Bitcoin market to new heights, or will the initial enthusiasm encounter obstacles? As the regulatory landscape takes center stage, the world of cryptocurrency braces itself for a thrilling start to the year.
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