Matrixport, a digital asset financial services group founded by Bitmain, a major player in Bitcoin mining, has released a report predicting a bullish breakout for Bitcoin in the fourth quarter of 2024. The report titled “Matrix on Target: Bullish Prospects for Bitcoin in Q4” outlines four key reasons for this positive outlook.
The first reason highlighted in the report is the narrowing trading range of Bitcoin. Typically, the third quarter presents challenges with breakout failures. However, this year, Bitcoin has shown a narrowing trading range, which often precedes significant price volatility. This pattern indicates a potential breakout in the near future.
Another important factor discussed in the report is the monetary policy of the US Federal Reserve. Currently, the Fed maintains an interest rate of 5.25% in comparison to a 3.0% inflation rate. There are speculations of a possible rate cut following comments from Fed Chair Jerome Powell, which could inject liquidity into the market and benefit risk assets like Bitcoin.
The upcoming US Presidential election also plays a significant role in Matrixport’s forecast. The report speculates on the impact of a potential re-election of Donald Trump, noting his administration’s approach to crypto regulation. Trump’s recent appearance at a Bitcoin conference and promises related to Bitcoin could signal supportive stances on cryptocurrency if re-elected.
Additionally, the report discusses the seasonal patterns affecting Bitcoin’s performance. Traditionally, August and September are sluggish months for Bitcoin due to lower trading volumes and market caution. However, given the unique economic and political context of this year, these patterns may be disrupted, leading to a potential unseasonal rally.
In conclusion, Matrixport maintains a cautiously optimistic stance on Bitcoin’s performance in the fourth quarter of 2024. The combination of a narrowing price range, potential easing of US monetary policy, and the impact of the US Presidential election could contribute to a significant bullish breakout in Bitcoin’s price trajectory. At the time of the report, Bitcoin was trading at $64,730.
Overall, the report provides valuable insights into the factors influencing Bitcoin’s price forecast for the upcoming months. Investors and enthusiasts in the cryptocurrency space will be closely monitoring these developments to gauge the potential impact on Bitcoin’s price movement. As the market continues to evolve, staying informed about key trends and events can help individuals make informed decisions regarding their investments in the digital asset space.