Matrixport Doubles With $45,000 Bitcoin Prediction As FOMO Grips Crypto Market.
Crypto financial services company Matrixport has doubled down on its previous forecast as FOMO sentiment grips the Bitcoin market.
This forecast comes as Bitcoin's market share has risen to 52.1% and its trading volume has skyrocketed to $29 billion in the past 24 hours.
“Abnormally High Bitcoin Futures Funding Rates”.
Matrixport correlates the renewed sense of FOMO to an unusually high level of funding for Bitcoin futures, suggesting that more traders are engaging in panic buying.
Earlier this year, Matrixport set a year-end goal of $45,000 for Bitcoin. With the rebound in the price of Bitcoin on the heels of growing expectations for approval of the Bitcoin ETF, the analyst firm has doubled down on the previous forecast.
If the US Securities and Exchange Commission (SEC) approves BlackRock's Bitcoin exchange-traded fund (ETF), the company suggests that the price of Bitcoin could rise further.
According to a Matrixport report, if 10%-20% of gold ETF investors decide to switch their investments to Bitcoin, it could result in an inflow of $12-24 billion into Bitcoin ETFs. This estimate is considered relatively conservative, especially considering that the market cap of Greyscale Bitcoin Trust (GBTC) previously reached a high of $44 billion.
Spot Bitcoin ETF Approval Could Send BTC Price To $56,000
The adoption of Bitcoin ETF has already made waves in the market.
BlackRock filed its application for a spot Bitcoin ETF, which subsequently led to a significant price increase for Bitcoin. If the approval materializes, Matrixport estimates that Bitcoin's price could reach $56,000.
Despite the SEC's recent delay in reviewing ETF applications, there is a growing belief that the cryptocurrency market may experience a significant influx of institutional funds.
Matrixport points to the potential impact of the 15,000-strong US investment advisory (RIA) community, which manages approximately $5 trillion. Even a modest 1% allocation recommendation for this group can generate nearly $50 billion in revenue.
