Matrixport sees Bitcoin growing as high as $160,000 in the coming year.
In a recent report, blockchain analytics platform Matrixport predicted that Bitcoin price BTC $86 654 24h volatility: 1.8% Market cap: $1.72 T Vol. 24h: $28.91 B will hit $160,000 by next year. The coin is trading at $100,255.98 following a 0.71% decline in the last 24 hours. While Matrixport prediction means that BTC’s price would need to register more than a 50% increase from its current level, it is consistent with some factors and events.
One such factor is the market’s continued demand for Bitcoin Exchange Traded Funds (ETFs). Other factors include the evolution of the macroeconomic environment and the expansion of the global liquidity pool. Another indicator signaling positive momentum for Bitcoin is the Greed and Fear Index. It signals that the current consolidation phase may be shorter than in the past.
Matrixport Sees Bitcoin Adoption by Institutional Investors
Matrixport acknowledged the massive growth that Bitcoin has recorded these past weeks, starting in November.
The firm highlighted how Bitcoin exceeded key price projections this year. This has been advantageous for all those institutional investors who adopted the coin by embracing Bitcoin ETFs.
It is likely that more investors will enter the market in 2025. Matrixport has recommended allocating Bitcoin at an optimal ratio of 1.55%, which can help achieve diversified benefits while maintaining portfolio stability.
#MatrixOnTarget Report📊 – Dec 13: #Bitcoin 2025 Target: $160,000 #Matrixport #Crypto #cryptomarket #MarketWatch #CryptoInvestors #BTC pic.twitter.com/hAjFPdq87U
— Matrixport Official (@Matrixport_EN) December 13, 2024
This is close to the 2% allocation suggested by investment asset management firm BlackRock. On Thursday, the firm wrote to its investors, advising them to approach Bitcoin in multi-asset portfolios similarly to mega-cap tech stocks. It then recommended that its clients consider allocating 1-2% of their overall traditional portfolios, which may consist of a mix of 60% stocks and 40% bonds, to Bitcoin.
At this rate, Bitcoin and other cryptocurrencies may be heading towards a critical adoption milestone.
The Matrixport report stated that there is a potential that it will surpass the 8% adoption threshold in the coming year. Once BTC is able to bag mainstream acceptance and adoption, the analytics platform says it will become a core component of the global financial market.
“Even though Bitcoin’s correlation to other assets is relatively low, it’s more volatile, making its effect on total risk contribution similar overall,” authors, including Samara Cohen, BlackRock’s CIO of ETF and index investments, wrote.
CEXs Records Reduced Bitcoin Supply
As Bitcoin’s institutional adoption climbs and impacts market dynamics, its supply on centralized exchanges is greatly impacted.
On December 12, the Bitcoin supply in CEXs dropped below 2.23 million BTC. Meanwhile, US spot Bitcoin ETFs, with more than 1.1 million BTC, have surpassed the holdings of pseudonymous creator Satoshi Nakamoto, who used to be the coin’s largest holder.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) alone holds more than 500,000 BTC and has recorded massive inflows alongside the other issuers.
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