Matrixport: Crypto Market Prices Expected to Rise Even If Bitcoin Spot ETF is Not Approved in January Next Year

Matrixport: Crypto Market Prices Expected to Rise Even If Bitcoin Spot ETF is Not Approved in January Next Year

Matrixport: Crypto Market Prices Expected to Rise Even If Bitcoin Spot ETF is Not Approved in January Next Year

Cryptocurrency service provider Matrixport’s analyst Markus Thielen stated in a report released on Thursday (14th) that even if the Bitcoin spot ETF does not receive approval from the US Securities and Exchange Commission (SEC) in January 2024, it is still possible to see higher cryptocurrency market prices next year.

Thielen mentioned several factors, including increased liquidity, the Bitcoin halving event, and the possibility of Donald Trump being re-elected as the US president, which would serve as catalysts for further price increases.

Thielen wrote that since the outbreak of the COVID-19 pandemic, the amount of funds in the US money market fund has increased from $3 trillion to $6.1 trillion. This growth means that the interest paid annually is about $370 billion, equivalent to approximately $1 billion per day. He believes that these funds will “easily” flow into riskier investments such as stocks and cryptocurrencies. Additionally, Thielen believes that this $6.1 trillion capital could also be used to drive up asset prices.

2024 is the year of the Bitcoin halving, during which the block reward will be reduced from 6.25 BTC to 3.125 BTC. Thielen pointed out that the average price of Bitcoin has risen by 192% during halving years.

Impact of the US Presidential Election

The analyst also stated that 2024 is the year of the US presidential election, and it is “very likely” that Trump will be re-elected, and his policies may boost the US economy, stock market, and cryptocurrency prices.

Thielen pointed out that although a Republican president may regain control of the White House, Gary Gensler, the Democratic SEC chairman, may continue to serve until June 2026. Thielen expects that by then, the Bitcoin spot ETF will be approved. However, he added that Trump, who has launched his own NFT series, is likely to support another measure that consolidates digital assets as an economic cornerstone.

However, Thielen predicts that the price of Bitcoin will remain in the range of $40,000 to $45,000 for the remaining weeks of 2023, and then attempt to rebound in January next year as traders focus on the potential approval date of the Bitcoin spot ETF.

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