Matrixport’s recent reports forecast a crypto market rally due to the US inflation drop and favourable economy. One of the standout performances this year is Grayscale Investments’ Bitcoin Trust (GBTC), with share prices surging by an astonishing 167% year-to-date, significantly outperforming Bitcoin’s own impressive 71% growth. At the beginning of the year, GBTC’s net asset value (NAV) discount stood at -45%, which had slightly narrowed to -43%.
However, the true game-changer arrived on June 15, 2023, when BlackRock, one of the world’s largest asset management firms, announced its ETF application for Bitcoin. This announcement set off a ripple effect across the crypto landscape, confirming the market’s growing legitimacy.
The company’s previous 2023 Crypto Outlook, published on December 9, 2022, is now drawing attention as the crypto market experiences a remarkable surge, largely in line with the company’s earlier projections. The report boldly predicted a substantial crypto rally driven by factors such as lower US inflation and favourable macroeconomic conditions. This foresight not only anticipated strong rebounds for Bitcoin and Ethereum but also predicted a significant drop in volatility.
Matrixport’s earlier reports had meticulously analyzed the 15,000-strong community of US registered investment advisors (RIAs) overseeing assets totalling approximately $5 trillion. The potential impact of this group became apparent as the report highlighted that even a modest 1% allocation recommendation for Bitcoin could lead to around $50 billion in inflows.
According to an analysis conducted by the team at Matrixport, the price of bitcoin might increase to between $42,000 and $56,000 if BlackRock’s spot bitcoin ETF is approved by the Securities and Exchange Commission. Using the estimated 15,000 U.S. registered investment advisors, such an ETF might receive inflows totalling $12 billion to $24 billion.
Looking ahead, the focus is now on the potential impact of the approval of the BlackRock Bitcoin ETF. According to Matrixport’s analysis, should Tether’s market capitalization increase by $24 billion, acting as a proxy for potential ETF inflows, Bitcoin’s price would conservatively rise to $42,000. With a more substantial influx of $50 billion, attributed to a 1% allocation recommendation from RIAs, Bitcoin could potentially surge to $56,000, further validating Matrixport’s earlier projections.
