Matrixport Predicts Bitcoin Price Will Hit $160,000 in 2025

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As a seasoned analyst with over two decades of experience in the financial markets, I find the Matrixport prediction for Bitcoin reaching $160,000 by next year quite intriguing. While such a projection might seem audacious to some, it is backed by several compelling factors that cannot be ignored.

According to a recent analysis by blockchain platform Matrixport, Bitcoin (BTC) could potentially reach $160,000 by the end of next year. Currently trading at $100,255.98, Bitcoin experienced a 0.71% drop in the last 24 hours, but if this prediction holds true, it would represent an increase of over 50% from its current price. This forecast aligns with certain factors and future 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 has noticed the significant surge Bitcoin has experienced over the past few weeks, with the trend beginning 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.

In 2025, it’s quite probable that we’ll see a rise in new investors joining the market. As suggested by Matrixport, a strategic approach could be to allocate around 1.55% of your investment towards Bitcoin. This tactic is expected to offer diversified advantages while ensuring a stable portfolio balance.

MatrixPort’s December 13th Report – MatrixOnTarget: Predicted Bitcoin Price for 2025: $160,000

— Matrixport Official (@Matrixport_EN) December 13, 2024

BlackRock investment asset management firm suggests that investors treat Bitcoin like mega-cap tech stocks when constructing multi-asset portfolios. On Thursday, they suggested that clients allocate between 1% to 2% of their traditional portfolio, which typically holds a mix of 60% stocks and 40% bonds, to Bitcoin. In simpler terms, BlackRock recommends including a small portion of Bitcoin in your overall investment portfolio, similar to the way you would include large tech companies like Google or Amazon.

Based on the current trend, Bitcoin and other cryptocurrencies could potentially reach a significant point of widespread acceptance.

According to Matrixport’s report, it’s possible that Bitcoin could exceed an 8% adoption rate within the next year. If Bitcoin manages to achieve widespread acceptance and integration, the analytics platform predicts that it could become a crucial element in the international financial system.

Despite Bitcoin’s correlation with other assets being fairly low, its high volatility means it contributes significantly to overall risk levels in a similar manner, according to Samara Cohen and other authors from BlackRock, who specialize in ETF and index investments.

CEXs Records Reduced Bitcoin Supply

As I’ve witnessed the surge in institutional adoption of Bitcoin, I can’t help but notice the ripple effects on market dynamics. This influx has significantly influenced the availability of Bitcoin on centralized exchanges, making it a scarcer commodity in these digital marketplaces.

On December 12th, the amount of Bitcoin held on exchanges (CEXs) fell below approximately 2.23 million Bitcoins. Concurrently, U.S. spot Bitcoin Exchange-Traded Funds (ETFs), containing over 1.1 million Bitcoins, have exceeded the holdings of the anonymous creator of Bitcoin, Satoshi Nakamoto, who was once the coin’s largest owner.

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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2024-12-13 15:03