In a bold prediction, Matrixport, a crypto services provider known for its optimistic stance on bitcoin (BTC), has projected that the leading cryptocurrency could rally to an impressive $125,000 by the close of 2024. This forecast is based on extensive data analysis, revealing a pattern where a substantial bull market follows the confirmation of the end of a bear market, typically marked by the establishment of a 12-month high after at least a year.
The recent trigger for this signal occurred in late June 2023 when bitcoin surpassed $31,000, reaching its highest level since June 2022. Historical records indicate that similar signals materialized in August 2012, December 2015, May 2019, and August 2020, all of which were followed by significant price rallies in subsequent years.
Markus Thielen, Head of Research and Strategy at Matrixport, emphasized the significance of this recent signal, stating, “On June 22, 2023, bitcoin achieved a new one-year high, marking a pivotal moment signaling the end of bear markets and the onset of new crypto bull markets.”
In a report shared with CoinDesk, Thielen further elaborated, “Drawing from past instances, we could potentially witness bitcoin prices surge by +123% over twelve months and by +310% over eighteen months, based on the average returns observed from signals triggered in 2015, 2019, and 2020. This projection implies prices of $65,539 within a year and $125,731 within eighteen months.”
Thielen consciously disregarded the 2012 signal and the subsequent extraordinary price increase of 5,285% in 2013, considering it an “unprecedented, out-of-proportion” bull market event.
At present, bitcoin is trading around $30,700, as per CoinDesk’s data.
Matrixport’s outlook aligns with the historical trend of bitcoin experiencing notable upward movements within 12 to 18 months following the halving of mining rewards. The upcoming fourth halving, expected to occur in March/April of next year, will reduce the new coins rewarded per block from 6.5 BTC to 3.25 BTC.