Matrixport Says Bitcoin Is Headed For $56,000, Here’s The Driver

Scott Matherson

1 year ago

3 mins read

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Crypto financial services platform Matrixport has predicted that an approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) could push the price of Bitcoin between $42,000 and $56,000 per unit.

BTC, the world’s largest cryptocurrency, has experienced notable increases in value throughout the current week, with the aim of surpassing the significant threshold of $30,000. The cryptocurrency has been influenced by the operations of a spot Bitcoin Exchange Traded Fund (ETF) as investors continue to await approval to onboard institutional and mainstream exposure to the digital asset.

Bitcoin Is Headed For $56,000

Matrixport conducted an analysis in its newly released report, examining the potential effects of a spot Bitcoin exchange-traded fund (ETF) on the cryptocurrency market, with a specific focus on BTC. Applications for these investment vehicles have gained momentum in recent months, with many now expecting a green light from the SEC.

The report draws a parallel close to the $120 billion precious metals ETF industry. If just 10–20% of investors in precious metal ETFs diversified their holdings into Bitcoin ETFs, it would result in an influx of $12b billion to $24 billion into these investment vehicles.

According to Matrixport, an approval, particularly a BlackRock Bitcoin ETF application, would see leading stablecoin USDT increase by as much as $50 billion in market cap. This, in turn, would lead to Bitcoin’s price rising to $56,000, with Tether acting as an intermediary facilitating the inflow of investments to BTC.

“Our earlier reports analysed the 15,000-strong US registered investor advisor (RIA) community overseeing around $5 trillion. This group holds immense potential, and even a modest 1% allocation recommendation for Bitcoin would usher in around $50 billion in inflows,” the report said.

A lesser influx of $24 billion into Tether would see BTC rise to $42,000 in the short term. With BTC currently trading at $29,370 with a market cap of $625.03 billion, this represents an increase of 90% and 43% in both scenarios.

BTC readies to break $30,000 | Source: BTCUSD on Tradingview.com

What’s Next For BTC? Is A Rally Inevitable?

The price of Bitcoin has always reacted to news regarding spot Bitcoin ETFs. Just news of applications from BlackRock, Fidelity, and other investment companies sent BTC surging. Recently, rumors that the SEC had approved BlackRock’s ETF application sent the industry into a frenzy, and $74 million worth of BTC positions were liquidated in just a few minutes.

There’s no denying the amount of capital a spot Bitcoin ETF would unlock for the crypto industry. If approved, a spot Bitcoin ETF could unlock a massive inflow of capital from institutional investors, up to $17.7 trillion from financial institutions.

According to Fundstrat co-founder Tom Lee, spot ETFs could push BTC to $150,000 or maybe even further by the end of next year.

Featured image from Forkast News, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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