Article Reading Time:
Analysts at Matrixport believe that the fifth bull cycle of cryptocurrencies has begunand predict bitcoin to rise to $125,000 by the end of 2024.
In total, bitcoin has gone through four bull cycles, analysts write.The first bull market in 2011 was caused by the emergence of BTC as a new payment mechanism.The second comes as bitcoin has gained acceptance as an alternative form of money in China.The third cycle began with Initial Coin Offerings (ICOs), while the fourth began with the launch of DeFi and NFTs.The fifth crypto bull market appears to be driven by expectations, the company said.
"Bitcoin's characteristics, which have traditionally been associated with assets such as gold, have prompted companies to consider the first cryptocurrency as a means of diversifying their asset allocation," they saidin Matrixport.
The new bull market officially began on June 22, 2023, when Bitcoin hit a new yearly high for the first time in a year.
"Based on this signal, we estimate that bitcoin could reach $125,000 by December 2024," they wrotein the company.
Analysts believe that the end of October 2022 was the perfect time for bitcoin, when it was worth $17,000.
Previously, Matrixport predicted the growth of the first cryptocurrency in 2023 to $45,000. Experts refer to their own trading indicators that allow them to predict prices for digital assets.
The Bitcoin rate recently surpassed $35,000 and reached its highest level since May last year, helped by positive traders' sentiments associated with the possible approval of a Bitcoin ETF in the United States.