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A change is in the air. Those of us who intimately follow Bitcoin-related developments could feel it in the innate resilience that the world’s apex cryptocurrency has demonstrated over the past couple of months. Yet, it was the incorporation of a hefty safe-haven premium in Bitcoin’s valuation in the wake of the ongoing Gaza-Israel war that is now convincing some analysts to officially declare a full-fledged bull market.
We had noted in a dedicated post back in April 2023 that Bitcoin had officially entered its macro uptrend ahead of the much-anticipated halving event, which will see the reward for mining the world’s preeminent cryptocurrency cut in half, unleashing a fierce deflationary wave in the process.
Not as long as Gold continues to be demonetized by Bitcoin… https://t.co/wgp6F17yUr pic.twitter.com/IXTa9CSQ6M
— André Dragosch | Bitcoin & Macro ⚡ (@Andre_Dragosch) October 23, 2023
In the interim, even as the SEC maintained its stringent regulatory broadsides against the crypto sphere in general, Bitcoin was able to consolidate. More recently, aided by the ever-shortening odds when it comes to the launch of some of the first spot Bitcoin ETFs in the US, as well as the addition of a hefty war premium, Bitcoin has been able to convincingly break past the psychologically important $30,000 price level.
As we noted in our previous post on this topic, the investment titan BlackRock, whose spot Bitcoin ETF application with the SEC currently stands the best chance of getting expedited approval, has now obtained the CUSIP ahead of the launch of a new ETF. This development is lending credence to the speculation that the SEC is quite close to approving BlackRock’s spot ETF application.
As per an analysis by K33 Research, the launch of spot Bitcoin ETFs could attract around 100,000 BTC in fresh investments within months, corresponding to over $3 billion in new investment, as per the current prices.
This brings us to the crux of the matter. Matrixport has now declared that the fifth bull market for Bitcoin is now officially underway. The crypto financial services provider believes that the ongoing bull market began on the 22nd of June, 2023, and will pump the price of the world’s apex cryptocurrency to $125,000 by the end of 2024, driven primarily by institutional adoption flows. The report notes:
“The fifth Bitcoin bull market appears to be primarily driven by the expectations of institutional adoption. Bitcoin’s characteristics, which were traditionally associated with assets like Gold and other safe-haven investments such as Treasury bonds, have led institutions to consider Bitcoin for diversifying their asset allocation. It is not a coincidence that Bitcoin is surging at a time when the United States’ debt-to-GDP ratio is reaching unsustainable levels.”
According to Matrixport’s analysis, the best time to buy Bitcoin is 14 to 16 months before its halving event. This time around, that window fell in October 2022, when Bitcoin was trading at around $17,000 price level.
Do you think Matrixport is correct in officially declaring a Bitcoin bull market? Let us know your thoughts in the comments section below.