Bitcoin Price to Hit $50,000 by February, Jihan Wu’s Matrixport Predicts, If This Happens
Chinese cryptocurrency journalist and blogger Colin Wu has shared a link to a recent executive summary published by cryptocurrency company Matrixport, founded by former Bitmain chief executive Jihan Wu.
The document explains why the company’s analysts expect Bitcoin to break above $50,000 by the end of January. This company was founded by Jihan Wu in 2019 after he left the famous producer of crypto miners Bitmain.
“This should lift Bitcoin prices above $50,000”
Matrixport expects the SEC regulator to approve Bitcoin spot ETF filings in January. This is expected to be the major driver that will likely let the Bitcoin price reach levels above the $50,000 mark by the end of January, the document states.
Matrixport expected the SEC to approve Bitcoin Spot ETFs in January and this should lift Bitcoin prices above $50,000 by the end of January 2024. TV commercials are being rolled out already from multiple ETF applicants, which will continue to support Bitcoin prices.…
— Wu Blockchain (@WuBlockchain) December 21, 2023
The massive price surge is expected since a large number of investors have acquired shares in Bitcoin mining or related stocks as a proxy, the document says. The Matrixport team has likened the much-anticipated launch of Bitcoin spot ETFs to the launch of Bitcoin futures by CME Group and then CBOE in December 2017 – back then, the flagship cryptocurrency’s price also escalated significantly, reaching $20,000 for the first time ever.
From the moment CME confirmed the upcoming BTC futures release and the moment when institutional traders could already trade them, Bitcoin surged by roughly 196% within seven weeks.
“Santa Claus rally,” and something else
The executive summary explains that the company’s team had predicted a period of consolidation for Bitcoin from approximately Dec. 8 until potentially the end of the month and year. Now, they expect BTC to break out closer to February.
Aside from that, the document reminds the crypto community, Bitcoin historically always rises by about 3% between Dec. 24 and 31 – often referred to as the “Santa Claus rally”. In 2011, 2013 and 2020, BTC even surged by 22% during that period.
However, there is something else that will likely help drive the Bitcoin price up – multiple Bitcoin ETF commercials that are prepared for launch now by participants in this “race.” Bitwise has already rolled out its Bitcoin advertisement. This gives Bitcoin a chance to break high during Christmas as well, and if in January ETFs are approved, they will likely push BTC above $50,000, Matrixport believes.