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Matrixport Predicts Bitcoin will Exceed $40,000 in December

The report reaches this conclusion despite the recent setback in the cryptosphere due to the Binance scandal.

Maxiport predicts BTC to reach $40k next month despite recent setbacks.
Credit: Picksell/Shutterstock 2021

Matrixport, a prominent crypto services provider, predicts a robust comeback for Bitcoin, forecasting a 90% chance of the cryptocurrency surpassing $40,000 by the end of December. This optimistic outlook comes in the wake of Binance, the largest crypto exchange, agreeing to a hefty $4 billion settlement with U.S. authorities for financial law violations.

Matrixport's Confidence Amidst Binance Turmoil

Despite the regulatory challenges faced by Binance, Matrixport remains confident in Bitcoin's resilience. Markus Thielen, the research head at Matrixport, highlighted a "robust counter-trend reaction" from Bitcoin's recent temporary correction, indicating a high likelihood of the cryptocurrency exceeding $38,000 by the end of November with an 80% probability. Furthermore, Thielen anticipates a strong rally above $40,000 in December, expressing a 90% confidence in this prediction. Thielen stated:

"We anticipate a high likelihood of Bitcoin surpassing $38,000 by the end of this month with an 80% probability, followed by a rally above $40,000 in December with a 90% probability,"

Matrixport identifies Tether's growing market capitalization as a sign of institutional investors shifting fiat into stablecoins, possibly converting them into cryptocurrencies like Bitcoin. Additionally, the recent surge in Bitcoin transaction fees further supports Matrixport's bullish stance.

Macro-Environment Favors Crypto

Matrixport emphasizes that the current macro-environment continues to support crypto despite external challenges. Thielen points out that falling bond yields, expected to reach 2.60% in the next two years, are poised to trigger a new boom for the stock market. This, in turn, is expected to benefit second-tier technology stocks, correlating with second-tier cryptocurrencies or altcoins.

"Ethereum’s short-term re-enter level is $2,030. The shorter-term model went long on September 27 at $1,600. Our longer-term model suggested a long position on October 25 at $1,787," Thielen added, highlighting the increasing risk capital allocation towards Ethereum as a higher beta trade.


To easily monitor the digital markets during December to see how the predictions will unfold, you can take a look at Concourse, a remarkable tool to assist you in staying ahead in the market.


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