Matrixport, a top cryptocurrency trading firm founded by Bitmain co-founder Jihan Wu, shared a new prediction, according to which Bitcoin is expected to reach $125,000 by December 2024 in its fifth bull market cycle that officially began in June.
The authors identify four prior bull cycles. The first was triggered by Bitcoin’s emergence as a new way to pay for things. The second followed its acceptance as an alternative form of currency in China. The third came when startups began using Initial Coin Offerings (ICOs) for fundraising. The fourth took off with the rise of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs).
The current fifth bull market, according to Matrixport experts, ‘officially began’ in June 2023, when Bitcoin hit a new year-to-date high, and is primarily driven by the anticipated entry of institutional investors (appears to be starting to materialize).
Historically, after hitting its first year-to-date higher high, Bitcoin’s value has averaged a rise of 310% thereafter. Meanwhile, the best time to buy Bitcoin has been around 14 to 16 months prior to a halving event, meaning October 2022 would have been the most optimal investment window based on this pattern.
Markus Thielen, head of research at Matrixport, notes the prospect of a U.S.-listed spot Bitcoin exchange-traded fund (ETF) “appears imminent.” ETFs are popular investment products that allow investors to gain exposure to cryptocurrencies without buying the underlying assets. Many expect ETF approval to attract mainstream investment into the sector. Thielen also highlighted that while Asia has the highest number of people owning cryptocurrencies, the buying power of investors and institutions in the U.S. is “a magnitude larger.”
In the last month alone, Bitcoin has risen ~25%. The Matrixport report also mentioned a 99% increase in trading volume, with a $92 billion trading across the market. However, some indicators suggest that this period of rapid growth might take a break soon.
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