When it comes to making predictions about the price of bitcoin, all fingers go up, even though most predictions never come true. Oddly enough, this year, Matrixport seems to have been correct in its predictions. On February 1, Matrixport announced that the parent crypto would reach $45,000 towards the end of the year. And when we see the trend in bitcoin over the past few weeks, everything suggests that we will end the year with bitcoin at more than $45,000. What does this mean for crypto investors?
Why has this year’s crypto rally focused on bitcoin?
Everyone was surprised to see bitcoin start this Friday, December 8, reaching $44,000. It is to believe that Matrixport’s prediction of BTC at $45,000 at the end of the year is already happening. Despite this trend, some fear a sudden decline in the price of cryptocurrency.
Many wonder why the rally is only focused on bitcoin and is not reflected at the same magnitude on other cryptos? Markus Thielen, head of research at Matrixport, answers this question and dissolves doubts.
Bitcoin depends on crowd psychology and the macroeconomic environment
For Markus Thielen, there are two main reasons why this year’s crypto rally has focused on bitcoin. He cites the bankruptcy of crypto lending companies and the March 2023 dismantling of banks offering crypto services.
The expert says that the difficulty of individuals exchanging their fiats for cryptos has focused the rally on bitcoin rather than altcoins. It should also be remembered that altcoins are often only of interest to individuals.
Markus Thielen also recalled that the evolution of the price of bitcoin does not obey the principle of chance. According to him, it is fueled by “a mixture of crowd psychology and macroeconomic factors”.
“[…] First a reaction to inflationary trends, followed by a response to the banking crisis, a surge from BlackRock’s ETF filing, a boost from Federal Reserve policy changes and , finally, the evolution of SEC regulations regarding bitcoin ETFs”. Suppose Thielen’s logic is valid. Currently, bitcoin is already on its way to $45,000. What would happen if the SEC approved Bitcoin EFTs next week for example? Crypto undoubtedly has imminent surprises in store for us.
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