Bitcoin’s $63,000 Target Still Achievable in March Amid Recent Setback: Matrixport

Bitcoin’s journey to $52,000 may have hit a speed bump, but experts believe this setback will be short-lived. According to Matrixport’s recent report, Bitcoin’s target of hitting $63,000 by March 2024 is still very much within reach.

What’s driving this optimistic outlook? Well, catalysts like the potential approval of a Bitcoin spot ETF, the upcoming Bitcoin halving, expectations of an interest rate cut post-Federal Reserve’s FOMC meeting, and the looming US presidential election are all playing a role.

Zooming Towards Bitcoin’s March 2024 Target

Following the SEC’s green light for spot Bitcoin ETFs, there has been a surge in demand for these offerings. In fact, spot Bitcoin ETFs saw a significant increase in funds over the last week compared to other exchange-traded products, with net inflows surpassing $2.2 billion.

The lion’s share of these funds poured into BlackRock’s IBIT ETF, raking in $1.6 billion. Fidelity’s FBTC came in second with $648.5 million, followed by Ark Invest/21Shares’ ARKB and Bitwise’s BITB with $405 million and $232.1 million, respectively.

The report also points out that expectations of interest rate cuts post-FOMC meetings could shift investor preferences towards riskier assets like Bitcoin. Lower interest rates typically make yield-generating investments less attractive, hence boosting the allure of growth-oriented assets.

Matrixport highlighted that upcoming US presidential elections and policy uncertainties could sway Bitcoin prices. Investors often turn to alternative assets like Bitcoin during such times to hedge against potential economic policy changes.

But predicting the exact impact of these events on crypto markets is no easy feat due to their intricate nature.

Meanwhile, former US President Donald Trump, currently leading the GOP presidential nomination race, has changed his tune on Bitcoin. Despite past criticisms, Trump now shows openness to Bitcoin’s growing demand and even considers accepting it.

Rising Demand Drives Bitcoin

Jag Kooner, Head of Derivatives at Bitfinex, predicts a bullish year for safe-haven assets like Bitcoin, gold, and silver in 2024. Persistently high inflation rates globally are expected to keep interest rates elevated, moderating hopes for quick monetary policy easing.

“Looking ahead to 2024, the outlook for equity markets appears more challenging. This aligns with our view and we believe will result in more demand for commodities and Bitcoin.”