Bitcoin faces a difficult Q1 ahead as Matrixport foresees GBTC investors continuing to capitalize.
Matrixport, a cryptocurrency asset management firm based in Singapore, has stated that the first quarter of the year will present challenges for Bitcoin. However, they anticipate a positive outlook for the cryptocurrency by the end of 2024.
According to a recent report from Matrixport, as Bitcoin fell to around $39,000, the largest cryptocurrency by market capitalization is expected to face a difficult quarter ahead. Matrixport pointed out that the institutional interest in a Bitcoin exchange-traded fund (ETF) was not as strong as initially predicted. Furthermore, investors in Grayscale’s Bitcoin Trust are taking advantage of the price gains of GBTC, which is adding to the challenges faced by Bitcoin.
Coinbase Research analysts, on the other hand, still believe that ETFs could lay the groundwork for new derivatives markets in the traditional financial world. However, it is still unclear whether these ETFs will receive regulatory approval.
As previously reported, BlackRock and Fidelity saw significant inflows of $1.9 billion and $1.6 billion, respectively, into their spot Bitcoin ETFs. Both companies are among the leading issuers approved by the U.S. Securities and Exchange Commission to list products as part of a group of 10 asset managers.
Despite Bitcoin’s drop below the $40,000 mark, the report suggests that the cryptocurrency’s price will recover from this support level. It emphasizes Bitcoin’s strength as a cryptocurrency, with numerous institutional investors now considering it a legitimate asset class.
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