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With the highly-anticipated Bitcoin halving just four months away, the world’s largest crypto asset is witnessing a strong rally driven by expectations of growing institutional demand.
On December 1st, Bitcoin briefly surged past $38.8k, a threshold not observed since May 2022. Although it quickly dipped below $38.3k, Matrixport’s report presents a compelling case for Bitcoin’s ascent to $125,000 by the end of 2024, drawing on historical trends, halving events, and macroeconomic indicators.
Catalysts for Bitcoin’s 2024 Bull Run
According to the prediction of Matrixport analysts, the current cycle is poised for another three-year bull market, with 2023 already showing promising signs with a growth of over 123%.
The report emphasized the positive correlation between Bitcoin halving events and bullish market conditions.
Historical data revealed that the years when Bitcoin mining rewards were halved were generally bullish. For instance, there was an 186% increase in 2012, 126% in 2016, and subsequently almost 300% in 2020.
Matrixport postulates that miners’ tendency to hoard Bitcoins before each halving, coupled with the ensuing scarcity, could propel prices by approximately 200%, paving the way for Bitcoin’s ascent to $125,000.
Furthermore, it reiterated its prediction that Bitcoin will reach $63,140 by April 2024.
As per the prominent digital asset platform’s inflation model, the macroeconomic environment will continue to favor crypto.
Anticipating a decline in inflation, Matrixport believes the Federal Reserve is resorting to interest rate cuts to sustain economic stability. This “healthy dose” of monetary policy, combined with geopolitical crosscurrents, is seen as a potent catalyst that could propel the crypto-asset to new heights in 2024.
Bitcoin $120,000 Prediction
Matrixport’s forecast aligns with the predictions of one of the prominent British banking institutions, Standard Chartered.
In July, Standard Chartered anticipated that Bitcoin’s price could reach $50,000 by the end of the year and surge to $120,000 by the close of 2024.
The banking institution hasn’t always expressed such optimism. It has mostly been known for a contrasting view. In December 2022, Eric Robertsen, the Global Head of Research at Standard Chartered, suggested that Bitcoin might decline to $5,000 in 2023, particularly in the aftermath of the FTX crash. Therefore, the bullish stance holds particular significance given the institution’s contrasting historical stance.
This article first appeared at CryptoPotato
