“The Bitcoin Bull Market has officially started, as evidenced by the surge in institutional interest, mass adoption, and the cryptocurrency’s ability to weather market volatility, making it a force to be reckoned with in the financial industry.”
Bitcoin has experienced a surge of 20% over the past week, currently trading at around $34,000. This year, the leading digital asset has seen a 120% increase and holds the highest level of market dominance it has had in several years.
According to analysts from Matrixport, these indicators suggest that the fifth bull run for Bitcoin has officially begun, with the start date being June 22, 2023.
In their recent market commentary, the analysts have set a price target of $125,000 for Bitcoin by December 2024. They based this prediction on their interpretation of a signal triggered when Bitcoin reached a new one-year high for the first time in a year.
Unlike previous bull market cycles driven by narratives such as China’s adoption and Initial Coin Offerings (ICOs), this current cycle is believed to be powered by expectations of institutional adoption. Institutions are considering Bitcoin as a diversification strategy for their asset allocation, as its characteristics align with traditional safe-haven investments like gold and Treasury bonds. The rising debt-to-GDP ratio in the United States is also playing a role in Bitcoin’s surge.
Matrixport is not the only firm to hold this view. Glassnode, in its latest report analyzing weekly on-chain activity, found that Bitcoin had surpassed several important pricing levels this week. This suggests that a significant portion of supply and investors now find themselves above the average break-even price, which is around $28,000. This sets the foundation for a continuation of the upward trend seen in 2023.
As Bitcoin continues to gain momentum, the market is optimistic about its future performance. With institutional adoption as a driving force, analysts foresee the price of Bitcoin reaching new heights in the coming years.