Cryptocurrency services Provider Matrixport has recently made a bold prediction regarding the future price of the flagship cryptocurrency Bitcoin ($BTC), predicting one coin could trade at a staggering $125,000 by the end of 2024.
Last year, the firm was among a small number of firms expressing bullish sentiment towards the number one cryptocurrency by market capitalization. Its recent forecast is rooted in historical data showing a pattern of a strong, multi-month bull market following the confirmation of the end of a bear market.
This confirmation, according to the firm, is seen when prices hita 12-month high for the first time in at least a year. The price of BTC has recently surpassed the $31,000 mark, hitting a new peak since June 2022.
This event has been noted as a significant trigger for an upturn in the market. Earlier instances of similar triggers were observed in August 2012, December 2015, May 2019, and August 2020 with each of these instances was followed by considerable price rallies in subsequent years.
CoinDesk reports Matrixport’s head of research and strategy, Markus Thielen, said that bitcoin’s one-year high is a signal that has “historically indicated the end of bear markets and the start of new crypto bull markets,” and added that if history is a guide “bitcoin pricess could climb by +123% over twelve months and by +310% over eighteen months.”
The figures are based on the average return of the signals triggered back in the 2015, 2019, and 2020 bear markets. If history is to repeat itself, the price of the flagship cryptocurrency would hit $65,500 in the next twelve months, and $125,700 in the next eighteen months.”
Notably, Thielen does not include the 2012 signal, which resulted in a 5,285% price increase in 2013. According to Thielen, this was an “epic, out-of-proportion” bull market, suggesting an anomaly that may not be indicative of future trends.
As CryptoGlobe reported, Larry Fink, Chairman and Chief Executive Officer of BlackRock, the world’s largest asset manager by assets under management, has recently said he believes the role of Bitcoin is “digitizing gold.”
Featured image via Unsplash.
