Matrixport, a prominent cryptocurrency financial services platform, predicts that bitcoin could see a substantial price surge, potentially reaching $56,000, if the U.S. Securities and Exchange Commission (SEC) approves BlackRock’s spot bitcoin exchange-traded fund (ETF). In an investor note released on Thursday, Matrixport estimated that inflows between $24 billion and $50 billion could push bitcoin prices to between $42,000 and $56,000 per unit.
The prediction is based on the assumption that 10% to 20% of investors in precious metals ETFs, which hold $120 billion in assets, might allocate just 1% of their portfolios to a bitcoin ETF. “If tether’s market cap increases by $24 billion, acting as a proxy for potential ETF inflows, bitcoin’s price would rise to $42,000, a conservative estimate,” Matrixport stated. A more substantial $50 billion influx could see bitcoin rally to $56,000, according to the crypto firm.
ETF Inflows Could Drive Massive Bitcoin Rally
Matrixport’s optimism is supported by recent events, such as a false rumor about the SEC approving BlackRock’s ETF application, which briefly drove bitcoin’s price up by $2,000 before a correction. The crypto firm believes that the macroeconomic conditions this year are more favorable for crypto, citing lower U.S. inflation as a catalyst for a substantial rally by the end of the year.
Additionally, Matrixport pointed to the performance of Grayscale’s Bitcoin Trust (GBTC) in 2023, which has outperformed bitcoin. GBTC’s discount to net asset value (NAV) narrowed slightly, while BlackRock’s ETF filing in June 2023 marked a “game-changer,” according to the report. Matrixport also emphasized the potential influence of U.S. registered investment advisors (RIAs), who manage approximately $5 trillion in assets. Even a 1% allocation to bitcoin by RIAs could inject around $50 billion into the market.
Bullish Long-Term Forecast for Bitcoin
Matrixport’s bullish outlook extends beyond the short-term. In a previous forecast, the company predicted that bitcoin could reach $125,000 per unit by the end of 2024. The firm believes that if history is any indication, there is a 100% probability that bitcoin will experience another major bull market by 2024, with prices climbing to six figures.
The anticipated approval of BlackRock’s ETF could be a significant milestone for the broader adoption of bitcoin, with the potential to attract institutional investors and drive up the cryptocurrency’s value. Matrixport also expects robust recoveries for both bitcoin (BTC) and ethereum (ETH) as market volatility diminishes in the coming months.
BlackRock’s recent amendment to its ETF filing with the SEC on October 18, 2023, has further fueled speculation about an imminent approval, setting the stage for a possible bitcoin price surge.
