Bitcoin price (BTC) is currently displaying a significant uptrend, showing no signs of slowing down. The cryptocurrency has already begun its fifth bull run, with impressive price targets anticipated in the coming year.
A recent report from Matrixport highlights BTC’s history of four distinct bull market cycles, each driven by a unique narrative. However, the latest bull market, which started on June 22, 2023, stands out due to its primary driving force: institutional adoption.
Per the report, this surge in institutional interest can be attributed to Bitcoin’s characteristics, traditionally associated with safe-haven investments like Gold, as well as mounting concerns over the United States debt-to-GDP ratio. Matrixport’s report predicts that Bitcoin’s price could reach an impressive $125,000 by December 2024.
Bitcoin Price Rise Aligns With Mounting US Debt
Matrixport suggests its emergence as a new payment mechanism propelled the first Bitcoin bull market in 2011. The second cycle was driven by China, where Bitcoin gained recognition as an alternative form of money.
The rise of initial coin offerings (ICOs) marked the third cycle, providing a novel means of establishing and funding companies. The fourth cycle saw the decentralized finance (DeFi) summer and the NFT craze dominating the market.
However, per the report, Bitcoin’s current bull market is driven by institutional adoption. Institutions are considering Bitcoin for diversifying their asset allocation due to its characteristics akin to safe-haven investments.
Notably, the surge in Bitcoin’s value coincides with the United States’ escalating debt-to-GDP ratio, making it an attractive choice for institutions seeking to hedge against potential economic instability.
Based on historical price signals, Matrixport estimated that Bitcoin price could reach $125,000 by December 2024.
Interestingly, the report suggests that the onset of this bull market was officially recognized when BTC reached a new one-year high on June 22, 2023.
Furthermore, Matrixport advises that the optimal entry point to buy Bitcoin is ideally 14-16 months before the next halving event. The report suggested that the end of October 2022 was an opportune time to enter the market when Bitcoin traded at $17,000.
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