Matrixport Predicts When Bitcoin’s Situation Will Improve

Matrixport’s latest report is for the fourth quarter of 2024 Bitcoin provides a positive forecast for.

Despite the challenges encountered in the third quarter, Bitcoin’s trading range has narrowed, paving the way for a potential breakout, according to the report. The report attributes this optimism to expectations of a Fed rate cut, positive seasonal factors, and the upcoming US presidential election.

The report notes that the Fed is keeping interest rates unchanged. However, Fed Chair Jerome Powell has indicated that a rate cut could be possible at the September meeting if inflation continues on its projected path. Matrixport’s inflation model also projects a gradual decline in the Consumer Price Index (CPI) over the next year. The potential for quarter-point rate cuts over multiple quarters could provide liquidity and stimulus to riskier assets like Bitcoin, the report says.

With current interest rates at 5.25% and inflation at 3%, the difference reflects the Fed’s restrictive policy. This suggests that the Fed could significantly reduce interest rates in the next twelve months, which would benefit Bitcoin, according to the report.

Matrixport’s report also highlights the seasonal challenges that Bitcoin typically faces in August and September, months that have historically seen flat returns and weak performance, likely due to lower trading volumes during the summer holiday period and uncertainty in the market as traders await economic indicators and central bank policy decisions in the fall.

The report suggests that the US presidential election could bring positive news for Bitcoin. If former President Donald Trump is re-elected, his administration to cryptocurrencies could adopt a more positive regulatory stance, reduce regulatory uncertainty, and encourage innovation. Trump’s recent appearance at the Nashville Bitcoin conference was well-received, but he did not announce any specific plans for a Bitcoin reserve.

*This is not investment advice.