Matrixport Forecasts Bitcoin Reaching $45,000 in 2023 Amidst High Futures Funding Rates
As the Bitcoin price takes off, Matrixport, a cryptocurrency services provider, has tweeted a price prediction that Bitcoin (BTC) is poised to reach $45,000 before the year concludes.
In the analysis shared on October 24, Matrixport highlighted that the elevated funding rates of Bitcoin futures are indicative of a market propelled by Fear of Missing Out (FOMO).
Current data from Coinglass show a noteworthy uptick in BTC futures funding rates subsequent to the digital currency breaching the $33,000 mark. At time of writing, the BTC price is $34,561, up more than 12% in the last 24hrs.
Presently, negative funding rates are an anomaly, visible on only one out of nine crypto trading platforms, reinforcing the notion that a majority of traders are banking on an extended upward trajectory.
Matrixport Confident Amidst Soaring Trading Volumes
Matrixport’s projections, grounded in their trading algorithms, maintain that their end-of-year target of $45,000 for Bitcoin is achievable.
This confidence is bolstered by Bitcoin’s sustained market dominance at 52.1% and a remarkable surge in trading volumes, touching $29 billion within a span of fewer than 24 hours.
Additionally, the potential rally may be spurred on by emerging developments in the Bitcoin ETF sphere, which now looks like a matter of when, not if.
Advancements Toward Bitcoin ETF Introduction in U.S. Market
In a significant move, BlackRock’s iShares Bitcoin Trust was recently cataloged on the Depository Trust and Clearing Corporation (DTCC), a step forward in the introduction of BTC ETFs in the U.S. financial markets.
The DTCC listing stipulates that the BlackRock Bitcoin initiative will operate under the symbol IBTC and distinguishes it as the pioneer spot Bitcoin ETF to be recognized by the DTCC, chosen from numerous proposals tendered since June 15.
Legal expert John E Deaton, affiliated with Crypto-Law US, contemplates the likelihood of a Bitcoin ETF gaining sanction by year’s end, or at the furthest, by the termination of Q1 2024.
However, Deaton concedes the alternative, where the U.S. Securities and Exchange Commission (SEC) is engaging with prospective Bitcoin ETFs to accrue more data, potentially to articulate a renewed basis for rejecting a spot ETF.