Analysts Predict ‘Higher Crypto Prices in 2024,’ Regardless of Spot Bitcoin ETF Approval
Matrixport’s research team has observed a significant increase in U.S. money market fund deposits, doubling since the outbreak of Covid-19. This growth, they believe, bodes well for the continued expansion of the crypto asset market. Analysts anticipate that bitcoin will maintain its upward trajectory, regardless of whether a spot exchange-traded fund (ETF) is approved, citing multiple factors driving its sustained demand.
Report Envisions Crypto Gains Even Without Spot Bitcoin ETF Green Light
In a mid-October analysis, Matrixport’s crypto financial services experts projected that bitcoin’s value could range between $42,000 and $56,000 per unit, should the U.S. Securities and Exchange Commission endorse a spot bitcoin ETF. However, a more recent report, led by Matrixport’s Head of Research Markus Thielen, suggests that bitcoin (BTC), along with the broader crypto market, is poised for growth even without ETF approval.
The report states, “Even if the SEC still disapproves of bitcoin spot ETFs in January 2024, we will likely see higher crypto prices in 2024. Crypto investors should monitor the bitcoin dominance chart daily as a declining indicator could signal that an altcoin rally is imminent.”
Matrixport’s analysts highlight the substantial growth in U.S. money market funds, which soared from $3 trillion to $6.1 trillion since Covid-19 began. This surge results in an extra $320 billion in annual interest payments, summing up to $370 billion each year, or roughly $1 billion daily. The research team believes such financial movements create an encouraging landscape for investments in volatile assets like stocks and crypto assets.
The year 2024 is also underscored as pivotal in the crypto domain. “Not only is 2024 a Bitcoin halving year in which bitcoin prices have risen — on average — by +192%, but 2024 is also an election year, and the likelihood that former President Donald Trump will be elected again is high,” note the researchers, echoing predictions similar to those of Vaneck. The report suggests Trump‘s potential policies could spur growth in the U.S. economy, thereby uplifting U.S. stocks and crypto tokens.
One of Matrixport’s earlier predictions has already materialized, with BTC surpassing the $42K mark. As of the latest data, the leading cryptocurrency is trading at $42,834 per unit as of 2:40 p.m. (EST) on Thursday. The report also touches upon discussions among Federal Reserve members, including Fed Chair Jerome Powell, about potential rate cuts. In a report published in July, the researchers predicted that BTC could skyrocket to $125,000 per coin by the end of 2024.
What do you think about the researcher’s report that suggests the crypto economy will continue to flourish even without a spot bitcoin ETF approval. Share your thoughts and opinions about this subject in the comments section below.
