Spot ETF Approval Could Push Bitcoin Above $50,000: Study

• Matrixport Forecasts Potential Bitcoin Surge to $50,000
• Analogous to 2017 Bitcoin Surge
• Triggering a Similar Surge with Bitcoin Spot ETFs
• Anticipated Price Breakout and Historic Gains
• The Effect of Intense Competition on Prices
• Possible SEC Repercussions

Matrixport Forecasts Potential Bitcoin Surge to $50,000

Matrixport, a prominent cryptocurrency investment firm, has made a prediction that Bitcoin$42,260 -0.64% prices might escalate beyond $50,000 by the end of January 2024. This forecast hinges on if the Securities and Exchange Commission (SEC) gives approval for Bitcoin spot exchange-traded funds (ETFs).

Analogous to 2017 Bitcoin Surge

In a new report, Matrixport draws a comparison to the year 2017. This was when Bitcoin futures were unveiled on the CME Group exchange which caused a nearly 200% price hike for Bitcoin in the six to seven weeks leading up to the initial day of futures trading.

Triggering a Similar Surge with Bitcoin Spot ETFs

Matrixport suggests that the possibility of Bitcoin spot ETFs could trigger a surge comparable to that of 2017. These spot ETFs differ from futures as they would provide mainstream stock investors exposure to Bitcoin itself rather than derivative contracts.

Upon foreseeing a consolidation period from December 8 to potentially the end of the year, we now anticipate that Bitcoin could have a breakout, Matrixport put forth.

Anticipated Price Breakout and Historic Gains

Matrixport, predicting a breakout in prices, even envisages modest gains of about 3% between Christmas and New Year's based on historical data. More importantly, the firm highlights past years such as 2011, 2013, and 2020, when Bitcoin prices escalated over 20% during the holiday season.

The Effect of Intense Competition on Prices

Intense rivalry among the numerous ETF applicants could also augment prices over the Christmas period. Several firms have already engaged in TV advertising campaigns to attract investor funds once the ETFs debut, aiming to become the leaders in the soon-to-launch spot ETF sector.

Possible SEC Repercussions

There is a chance that prices could plummet in the near future if the SEC rejects or delays spot ETFs. Even if the launch progresses without a hitch, the technical trading aspects associated with the ETFs could cause volatility. Nevertheless, Matrixport remains optimistic that the SEC will authorize spot Bitcoin ETF trading soon.

Edited by Jonathan Stoker