Crypto services company Matrixport is not shying away from optimism, forecasting a bullish trend for bitcoin that may see it reach an impressive sum of $125,000 by the end of 2024. Combining recent data with historical patterns, the company proposes that this peak occurs only when a 12-month high has been cemented, indicating the cessation of a bear market.
Analyzing bitcoin’s track record, late last month saw the cryptocurrency pass the $31,000 mark, the highest it has obtained since June 2022. This momentous event closely mirrors those recorded in August 2012, December 2015, May 2019, and August 2020, all of which catalyzed a period of heightened value for the leading virtual currency.
Indeed, the acknowledgement of these strategically significant points was vocalized by Markus Thielen, head of research and strategy at Matrixport, who stipulated that based on average return rates triggered by the signals of 2015, 2019, and 2020, Bitcoin could rise by +123% over twelve months, reaching a gargantuan sum of $65,539, and an incredible +310% over eighteen months to soar to a net worth of approximately $125,731.
This lofty projection, however, does not take into account Bitcoin’s 5,285% price rise in 2013, which followed the signal of 2012, dismissed by Thielen as an “epic, out-of-proportion” bull surge.
Aside from this historical observation, it’s noteworthy that the anticipated peak also tallies with the behavior of Bitcoin immediately following its mining reward halving events in previous years. This particular event, which halves the new coins per block, will occur within the next financial year, stirring anticipation among crypto-enthusiasts.
However, there might be a dose of skepticism to be had. While history often repeats itself, it’s important not to lose sight of the potential drawbacks that may prevent this Bitcoin trajectory from being executed as projected. Cryptocurrency, as with any investment, remains susceptible to unpredictable fluctuations caused by factors like regulatory policies and broader economic conditions.
Guaranteeing Bitcoin’s price performance would lead us down a path of insensibility. We should bear in mind, despite the signs indicating a promising rise, the unpredictability that defines the crypto realm. The future of Bitcoin, while catching several excited glances from the bullish side of the coin, still holds untold potential and risks that we must keep apace of.
Source: Coindesk
