Bitcoin Will Drop Below $36,000 Before Bouncing Back: Matrixport
Matrixport forecasts Bitcoin's drop to $36,000 in Q1, followed by recovery; ETFs influence the market with significant outflows and buys.
Matrixport predicts a tough Q1 for Bitcoin, with its price dropping to around $36,000 before recovering. The Bitcoin spot ETF has been a big deal for the industry, and now that it's here, its impact is closely watched.
Bitcoin's recent fall to $39,000 raises questions about the ETFs amid investors' hopes of a bull run being cut short and swapped for a disappointing dip. TradeFi's interest in the ETF hasn't been as high as expected, contributing to Bitcoin's predicted decline.
Matrixport's report says Bitcoin will hit a low of $36,739 but will bounce back. Bitcoin's strong base and liquidity support this rebound, despite initial ETF market challenges.
In related news, Grayscale’s Bitcoin spot ETF GBTC reported a net outflow of $394 million on January 25. However, outflows slowed over three days, hinting at a potential trend reversal.
ETF issuers buying large amounts of Bitcoin are becoming influential players in the market. The industry now faces the effects of these actions on Bitcoin's price.
