Matrixport: Bitcoin $70,000 Year-End Target May Be Too Conservative

On October 18th, Matrixport released a new report stating that in early February 2024, Matrix on Target predicted that Bitcoin would end the year at $70,000, when the price was around $42,000 at the time. While some considered this prediction conservative, this was a significant +65% increase from the price at the time. As of now, the Bitcoin price is fluctuating below $70,000, indicating that there are still challenges to overcome to break through this psychological barrier, but the overall prediction is broadly accurate.

The report suggests that Bitcoin is on track to break above the $70,000 mark and that developments in the US political landscape will influence market sentiment. If Trump is re-elected as president in 2025, his pro-business and skeptical Federal Reserve policies are expected to provide a favorable environment for bitcoin. Although Trump has railed against cryptocurrencies, the direction of his administration will favor the market for bitcoin. Trump's last term drove economic growth through deregulation and tax policies, and these policy trends are favorable to the bitcoin and crypto asset markets.

Therefore, the report's forecast of a $70,000 year-end closing price, while accurate, is perhaps too conservative. Last week, Matrixport noted that investors had not yet begun to prepare their positions for a Trump victory. Since then, Bitcoin has seen a sharp 8% rise. As the probability of a Trump victory climbs sharply, it's increasingly likely that we'll see an even stronger return for Bitcoin.