Matrixport, a leading crypto financial services platform, forecasts that Bitcoin will soar to $50,000 in the next 30 days, driven by several positive factors. The company expects that the approval of spot Bitcoin ETFs by the U.S. regulator, the increasing institutional adoption of Bitcoin, the limited supply of the cryptocurrency, and the historical seasonal pattern will boost the price of Bitcoin to new highs.
The report pointed out the tendency for Bitcoin to rally during halving cycles which coincides with the US election. It stated that BTC's average return during the 2020, 2016, and 2012 years was +192%. It said that Bitcoin could soar to $125,000 based on the company's one-year-new-high indicator.
"Similarly, US stocks tend to perform strongly during US election years, with the only two down years being 2008 (-37%) and 2000 (-9.1%) since 1960 – or 60 years."
An Altcoin Season
Matrixport also predicts that the crypto market will enter an altcoin season, a phase when alternative cryptocurrencies outperform Bitcoin in terms of returns. The company advises investors to diversify their portfolios with altcoins that have strong fundamentals and growth potential.
"We are very bullish on Bitcoin and the crypto market in general. We believe that Bitcoin is a scarce and valuable asset that can hedge against inflation and currency devaluation. We also see a lot of demand and interest from institutional investors, who are looking for exposure to this new asset class. We think that the approval of spot Bitcoin ETFs by the SEC will be a game-changer for the industry, as it will increase the liquidity and accessibility of Bitcoin to a wider audience. We also observe that Bitcoin tends to perform well in the first quarter of the year, following a seasonal pattern of growth. Based on these factors, we expect that Bitcoin will reach $50,000 by the end of January," said John Ge, co-founder and CEO of Matrixport.
50 Altcoins That Performed Better Than Bitcoin
Matrixport also anticipates that the crypto market will witness an altcoin season, a period when alternative cryptocurrencies outperform Bitcoin in terms of returns. The company cites the Altcoin Season Index, which measures the percentage of top 50 coins that have performed better than Bitcoin over the last 90 days.
According to the index, the current value of 69 indicates that the market is close to an altcoin season, which usually occurs when the value exceeds 75. Matrixport also notes that the funding rates for altcoins, which reflect the cost of holding long positions in the futures market, are currently at +66%, indicating a high level of optimism and speculation among traders. The company advises investors to diversify their portfolios with altcoins that have strong fundamentals and growth potential, such as Ethereum, Solana, Chainlink, and Polygon.
The Future of The Crypto Space
"Altcoins are the future of the crypto space. They offer more innovation, diversity, and utility than Bitcoin. They also have higher returns potential, as they are still undervalued compared to Bitcoin. We think that the crypto market is poised to enter an altcoin season, as more investors and traders realize the benefits and opportunities of altcoins.
We recommend investors to allocate a portion of their portfolio to altcoins that have solid use cases, strong communities, and high growth prospects. Some of the altcoins that we are bullish on are Ethereum, Solana, Chainlink, and Polygon, as they are leading the development of the decentralized web, smart contracts, oracle networks, and scaling solutions," said Cynthia Wu, head of business development and sales at Matrixport.
Over $10 Billion in AUM
Matrixport is a Singapore-based crypto financial services platform that offers various crypto products, such as loans, swaps, futures, and insurance, with low fees and high security. The company also provides a platform for users to buy, sell, and store crypto assets with ease. Matrixport has over $10 billion in assets under management and custody, and over 290 employees globally. The company is backed by top investors in the East and West, such as IDG Capital, Lightspeed Venture Partners, and Standard Crypto. Matrixport aims to be the one-stop shop for all crypto needs, and to empower everyone to get more from their crypto.
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