Matrixport Warns of Bitcoin's Potential Dip to $36K Amid Market Uncertainty

In a recent research report published on January 26, Matrixport, made a bold prediction regarding Bitcoin's price trajectory. In a X post today, crypto journalist Colin Wu revealed the latest Matrixport report. 

The study  suggests that Bitcoin could experience a dip to the support level of $36,739, followed by a rebound, contingent upon the overall liquidity and macro environment remaining supportive. This forecast comes on the heels of a challenging week for Bitcoin, during which its value plunged below $40,000 for the first time since December.

On January 23, 2024, Bitcoin witnessed a sharp decline, touching approximately $38,680. However, the cryptocurrency has shown resilience by bouncing back, currently trading at $40,639.

Matrixport's latest Bitcoin projection follows its earlier forecast of Bitcoin reaching $50,000. The initial analysis emphasized the significance of Spot ETF approvals as a driving force behind Bitcoin's surge to the $50,000 level. 

However, it's worth noting that Matrixport's prior prediction regarding the SEC's approval of spot Bitcoin ETFs proved inaccurate, as the SEC approved 11 spot Bitcoin ETFs on January 11, 2024.

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Matrixport's Current Sentiment and Market Echoes

The recent sentiment expressed by Matrixport shares similarities with Arthur Hayes, the Co-founder of BitMEX. Hayes anticipates Bitcoin potentially dropping below $35,000 due to global macroeconomic factors and political uncertainties. 

He cites Federal Reserve policies, inflation concerns, Middle East conflicts, and the US presidential election as contributing factors to a potential Bitcoin correction.

Hayes suggests that risk assets, including cryptocurrencies, may be awaiting a turnaround by the Federal Reserve in March, anticipating an interest rate cut that could inject liquidity back into the market. 

Despite this, he cautions that political circumstances may lead to increased shipping costs, contributing to higher prices in the third or fourth quarter. Considering these variables, Hayes envisions a correction of around 30%, with Bitcoin potentially correcting from the local high of $49,000 to $33,600.

Notably, other market observers, including Placeholder's partner, Burniske, echo a cautious stance too. Burniske suggests that Bitcoin could drop to "at least" $30,000-$36,000 before reaching a local bottom, and he wouldn't be surprised if the cryptocurrency tests the mid-to-high 20s. 

He emphasizes the volatility of the path ahead, anticipating fakeouts and a gradual unfolding of these market dynamics over several months.