Will Bitcoin continue to rise by the end of the year? Analysis firm releases optimistic forecast

In a promising scenario for the cryptocurrency market, investment company Matrixport expects a significant increase in the value of Bitcoin, which could surpass the $50,000 mark by the end of January 2024.

The forecast is based on the expectation that the US Securities and Exchange Commission (SEC) will approve Bitcoin spot exchange-traded funds (ETFs).

Referring to the 2017 scenario, when CME Group’s launch of Bitcoin futures generated a nearly threefold jump in the cryptocurrency’s value, Matrixport sees similar potential with the introduction of spot ETFs.

Unlike futures, these ETFs would give traditional investors direct access to Bitcoin, not just derivatives contracts.

Matrixport’s expectations are not limited to a long-term increase. The company expects modest growth of 3% between Christmas and New Year based on historical trends.

Furthermore, it is worth noting that the festive period in years such as 2011, 2013 and 2020 was marked by a growth of Bitcoin prices by over 20%.

Another factor that could drive this growth is intensifying competition among ambitious ETFs. With several companies launching advertising campaigns to attract investors, prices are expected to rise over Christmas.

However, it is important to note that the SEC’s rejection or delay in approval of spot ETFs could have a negative impact on prices in the short term.

Additionally, the technical complexity associated with trading ETFs can introduce volatility into the market. Still, Matrixport remains optimistic, confident in the SEC’s impending approval for spot trading in Bitcoin ETFs.