Cryptocurrency trading firm Matrixport, founded by Bitmain co-founder Wu Jihan, has reaffirmed its prediction that the price of Bitcoin (BTC) will reach $45,000 by the end of 2023. This bold prediction was initially set in early 2023 and was recently reiterated in a blog post titled “Bitcoin Targets $45,000 – FOMO Is Hitting the Market” on October 24.
In the blog post, Matrixport provides a brief analysis of its previous market forecasts and highlights its successful predictions of several market events. The firm specifically references its report titled “October Ignites a Bitcoin Boom: Institutions Fueling the Price Surge” from September 2023, which accurately predicted significant action in the Bitcoin market during October.
Matrixport anticipated that October would be a strong month for Bitcoin due to the excitement surrounding potential approvals of a spot BTC exchange-traded fund (ETF). The firm also pointed out that historically, October has been the strongest month for Bitcoin, with average returns of 20%.
The firm’s prediction has gained confidence as Bitcoin briefly touched $35,000 on October 24, reaching 17-month highs and sparking fear of missing out (FOMO) among investors. At the time of writing, Bitcoin is trading at $34,396, representing a 27% increase from its price on October 1, according to data from CoinGecko.
Matrixport believes that Bitcoin’s breakout above July’s $31,500 level demonstrates the feasibility of reaching $45,000 by the end of the year. The firm stated in its report, “While our prediction might have been bold, our analysis is based on a proven investment process that has been incredibly successful this year.”
Interestingly, Matrixport first mentioned the $45,000 Bitcoin prediction in its bullish 2023 report published in January. Back then, the firm wrote, “There is a high statistical probability that Bitcoin prices could double from here until year-end. This could bring Bitcoin prices to $45,000 by Christmas 2023.”
However, not all analysts share Matrixport’s optimism. In December 2022, the global research head and chief strategist at Standard Chartered predicted that Bitcoin could drop to as low as $5,000 in 2023. It’s worth noting that the lowest value Bitcoin has seen so far this year was around $16,600.
Despite the different outlooks, the cryptocurrency market continues to generate excitement and draw attention from investors. The future trajectory of Bitcoin’s price remains uncertain, and investors must consider multiple factors when making investment decisions.
In conclusion, Matrixport maintains its prediction that Bitcoin will reach $45,000 by the end of 2023. The firm’s analysis is grounded in its successful investment process and historical trends, although other analysts have expressed more cautious opinions. As the year progresses, the crypto market will undoubtedly keep investors engaged and eager to see the outcome of such predictions.