Bitcoin (BTC) Price To Take Deep Plunge? Matrixport Makes Bold Predictions at $36K

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The entire crypto market is in a split right now and King Crypto is dealing with ETF crash anticipations. Bitcoin faced a challenging week, dropping below $40,000 for the first time since December and reaching around $38,680 on January 23, 2024. However, the cryptocurrency has since bounced back, surpassing the $40,000 mark and currently trading at $40,070, marking a 0.3% increase over the past 24 hours. This rally has pumped investor confidence in Bitcoin. But Matrixport has some interesting things to reveal.

Matrixport’s Bold Claims: Are $50,000 Predictions Unrealistic Given Market Conditions?

According to Matrixport’s latest research report, released on January 26, Bitcoin will experience a dip to the support level of $36,739. The report suggests that despite TradeFi’s lukewarm interest in a Bitcoin spot ETF and GBTC investors taking profits, the overall liquidity crunch and macro factors remain bullish, allowing for a rebound from this support level.

Interestingly, Matrixport Research, as reported by crypto journalist Colin Wu, challenges that despite the recent recovery, Bitcoin is bound to go down $36,739. The report attributes this potential dip to TradeFi’s tepid interest in Bitcoin spot ETFs and ongoing profit-taking by GBTC investors. Grayscale, having been approved to launch spot-based Bitcoin ETFs, has been transferring substantial amounts of Bitcoin to Coinbase Prime, drawing mixed reactions within the crypto community. As per lookonchain data, since the ETF approval, Grayscale has deposited 103,134 BTC ($4.23 billion) to the custodian platform, including 9,434 BTC making it the biggest move this week.

Matrixport made a prediction a few weeks ago that Bitcoin would take off and reach $50,000 after the SEC approved Bitcoin spot ETFs on January 10. This prediction follows closely from the previous prediction. Bitcoin is still worth $40,000, even though it was approved. Matrixport predicts that it could fall to $36,739 before rising again.