Bitcoin Price Forecast: Matrixport Report Predicts 90% Chance of Surpassing $40,000 in December

Explore Matrixport's latest report, revealing a 90% chance for Bitcoin to surpass $40,000 in December and Ethereum's growing dominance.

Learn how the evolving macro environment could shape the future of cryptocurrencies and impact stocks and altcoins.

Matrixport Anticipates Bitcoin to Exceed $40,000 by December with a 90% Probability

Cryptocurrency service company Matrixport released a report on November 23, 2023, forecasting that Bitcoin (BTC) has a 90% chance of exceeding $40,000 in December 2023.

Bitcoin (BTC) has been hovering around $36,000 since its rise to the vicinity of $38,000 on the 9th of this month.

Matrixport predicts that "Bitcoin is likely to break through $38,000 by the end of this month with an 80% probability, and surpass $40,000 in December."

The company also points out that the market capitalization of USDT has increased by $5 billion since September 2023, indicating "a higher likelihood of institutional investors exchanging fiat currency for stablecoins to purchase cryptocurrencies like Bitcoin."

A notable point highlighted in the report is "the increase in fees across various blockchains," with Bitcoin fees having risen most significantly this month.

Ethereum's Entry Point Discussed in the Report

The report also mentions Ethereum (ETH), stating that "Bitcoin's dominance reached its peak at 53.4% on October 26, but the tendency of traders to shift risk capital towards Ethereum has increased following BlackRock's application for an Ethereum ETF."

Significantly, "the fees within the Ethereum ecosystem in November have reached their highest level since July 2023," and it is commented that "the short-term re-entry price for Ethereum is $2,030."

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.

Comments on Stocks and Altcoins

Matrixport states that "the macro environment continues to support cryptocurrencies," and they are confident that "bond yields will drop to 2.60% by 2024 or 2025."

The company mentions that "the decline in bond yields could trigger a new boom in the stock market," and it is likely to "particularly benefit second-tier tech stocks and second-tier cryptocurrencies (altcoins)."