Posted by Xoken.org – The price of Bitcoin managed to reach the level of US$52,000 on February 20 2024. After this price achievement, BTC was observed to stagnate in the area of US$51,000 – US$52,000. Even though the price movement of this popular crypto asset tends to be stagnant, Matrixport is optimistic that the BTC price will reach US$63,000 in March 2024 or one month before the Bitcoin halving.
In its report, Matrixport names four catalysts that will drive Bitcoin prices next month. First and most important was the landmark approval of a spot Bitcoin ETF by the SEC on January 10th.
This regulatory approval not only legitimized Bitcoin in the eyes of many skeptics but also sparked a surge in demand, with daily trading volume soaring to nearly US$2 billion. The influx of around US$2.3 billion into spot Bitcoin ETFs in one week underscores the market’s hunger for accessible Bitcoin investment vehicles.
Second is that the upcoming Bitcoin halving event in 2024 is another important driver. By slashing the rewards for mining new blocks, this halving will limit the supply of new Bitcoins, which is historically a precursor to large price increases. This adjustment on the supply side, coupled with increasing demand, opens up opportunities for significant price appreciation.
All three anticipated interest rate cuts following the Federal Reserve meeting could support risk assets like Bitcoin. Lower interest rates reduce the attractiveness of yield-bearing investments, making growth-oriented assets more attractive.
Fourth is that the approaching US presidential election and the associated policy uncertainty has often seen investors flock to Bitcoin as a hedge against potential economic changes.
Another Optimistic Prediction for Bitcoin Price
This sentiment is also supported by industry stalwarts, with Bitwise CIO Matt Hougan predicting Bitcoin could surge past US$80,000, supported by ETF-driven demand.
Analysts Bernstein and SkyBridge’s Anthony Scaramucci also forecast a bullish future, with projections of surpassing previous all-time highs.