BasEx | Matrixport Predicts Bitcoin's Inevitable Rise Above $40,000
Matrixport Declares $40,000 Bitcoin Breakthrough 'Inevitable'
24.11.2023
Matrixport Declares $40,000 Bitcoin Breakthrough 'Inevitable'

According to Matrixport experts, Bitcoin has the potential to reach $40,000 by the end of the year. This could be possible following the resolution of legal issues between the U.S. authorities and the cryptocurrency platform Binance, as well as its former CEO, Changpeng Zhao.

The situation with Binance has been described by experts as a "key moment" for the entire cryptocurrency industry. On November 21, the company agreed to pay $4.3 billion as compensation to FinCEN and OFAC, and Zhao stepped down as CEO and posted bail of $175 million to maintain his freedom.

Specialists believe the company could have faced much more serious penalties, up to $10 billion, and accusations of misusing client funds or manipulating the market. This outcome suggests that Binance will maintain its position among the leading cryptocurrency exchanges for the next 2-3 years.

News about Binance led to a temporary correction in Bitcoin's price, which then rebounded from $36,000, showing steady growth. Experts believe its further rise above $40,000 seems inevitable.

One of the key growth factors will be the anticipation of the approval of a spot Bitcoin ETF. Additional support will come from the seasonal rise in Bitcoin's value, traditionally observed in the last month of the year. Another positive signal is the increase in Tether's capitalization by $5 billion in recent weeks, indicating an influx of investments from institutional investors.

"The issuance of 600 million USDT following the Binance/Zhao deal has increased the likelihood of ETF approval by January," note the analysts.

Bitcoin is also supported by the macroeconomic situation. Matrixport expects inflation to decrease to 1.6%, and the yield on ten-year U.S. Treasury bonds to fall to 2.6% by 2024-2025. Improvements in the UST situation will lead to a sharp rise in the stock market, which often correlates with the digital asset market, add the experts.

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