Chinese blogger and writer Colin Wu has provided a link to a recent executive summary released by Matrixport, a cryptocurrency startup that Jihan Wu, the former CEO of Bitmain, created.
The report outlines the rationale behind the company’s experts’ prediction that Bitcoin would surpass $50,000 by the end of January. Jihan Wu started this business in 2019 after quitting Bitmain, a well-known manufacturer of cryptocurrency miners.
“This should lift Bitcoin prices above $50,000”
Matrixport anticipates that in January, the SEC regulator would accept filings for Bitcoin spot ETFs. According to the paper, this is anticipated to be the primary factor that allows the price of Bitcoin to rise beyond $50,000 by the end of January.
https://x.com/WuBlockchain/status/1737760781197066672?s=20
According to the paper, a significant number of investors have purchased shares in Bitcoin mining or similar firms as a stand-in, therefore the sharp price increase is predicted. The Matrixport team has drawn comparisons between the much-awaited introduction of Bitcoin spot ETFs with the December 2017 introduction of Bitcoin futures by CME Group and later CBOE, during which time the price of the flagship cryptocurrency also experienced a sharp increase, hitting $20,000 for the first time ever.
Within seven weeks, Bitcoin increased by about 196% from the time CME announced that BTC futures will be released until institutional traders could begin trading them.
“Santa Claus rally,” and something else
According to the executive summary, the team at the firm had anticipated that Bitcoin would consolidate from about December 8 until maybe the end of the month or year. They now predict that Bitcoin will peak closer to February.
Apart from that, the paper informs the cryptocurrency world that, historically, Bitcoin always has a 3% increase between December 24 and December 31; this period is known as the “Santa Claus rally.” In the years 2011, 2013, and 2020, Bitcoin even had a 22% increase.
Nevertheless, there is another factor that will probably contribute to the increase in the price of Bitcoin: a number of Bitcoin ETF advertisements that the competitors in this “race” have already prepared for release. Bitwise’s Bitcoin advertising has already been released. This provides Bitcoin the opportunity to rise beyond $50,000 if ETFs are allowed in January, and it also gives it a chance to break high during the Christmas season, according to Matrixport.
