Top crypto trading firm Matrixport predicts that Bitcoin could spike to $125,000 by December 2024.
While the crypto community is eagerly anticipating the inception of the fifth Bitcoin bull market, Matrixport noted in its recent analysis that the bull run is currently ongoing.
According to its latest report, Matrixport said the fifth Bitcoin bull market officially began on June 22, 2023, when the price of the asset reached a new one-year high for the first time in a year.
Previous Bitcoin Bull Cycles
The rationale behind the fifth Bitcoin bull market, according to Matrixport, is different from the previous four cycles. It pointed out that the first Bitcoin bull market started in 2011 after BTC showcased itself as a new payment mechanism.
Matrixport noted that China pioneered the second bull market when it recognized the top crypto asset as an alternative form of money. Per Matrixport, the third bull cycle was driven by the rise of initial coin offerings (ICOs). The firm stated that the fourth Bitcoin cycle commenced in 2021, and it was caused by the DeFi summer and NFT craze.
Contrary to the previous Bitcoin bull markets, the current and fifth BTC bull run was primarily driven by the growing expectations of institutional adoption of crypto due to the unsustainable U.S. debt-to-GDP ratio.
Bitcoin to Reach $125K By December 2024
Interestingly, Matrixport predicted that the price of one unit of Bitcoin could reach an all-time high of $125,000 by December 2024. The trading company attached a chart to the analysis, highlighting how the fifth Bitcoin bull market will unfold.
The Matrixport chart shows that BTC could trade at $45,000 around December 2023 and January 2024. Furthermore, the top asset class will experience a slight dip in February 2024 before rallying to around $63,130 in Q2 2024.
The firm forecasts that Bitcoin’s price will plunge by August 2024 before resuming its rally by October. This time, Bitcoin will continue the rally until it reaches the projected price of $125,000 by December 2024.
Ideal Time to Buy
It bears mentioning that the next Bitcoin halving is expected to take place by April 2024. As a result, Matrixport noted that the ideal time to buy Bitcoin was 14 – 16 months before the next halving event.
“This is why the end of October 2022 was the perfect entry time, as our report suggested, when Bitcoin was trading at just $17,000,” Matrixport noted.
At the time of writing, Bitcoin was changing hands at $34,214, down 0.5% over the past day. Recall that BTC briefly touched $35K yesterday as the crypto community continues to anticipate the SEC’s approval of a spot Bitcoin ETF.
Many analysts believe that the approval of a spot Bitcoin ETF in the U.S. will boost institutional adoption, thus propelling the asset’s price to surge further.
So far, leading financial institutions, including BlackRock and Grayscale Investments, have filed applications to launch a spot-traded Bitcoin ETF. However, the Securities and Exchange Commission has not yet given its decision on the multiple applications for a spot Bitcoin fund.