Matrixport Anticipates Bitcoin Dip Below $36,000 in Q1, Envisages Subsequent Recovery

Matrixport's latest projection foresees a challenging Q1 for Bitcoin, predicting a dip to approximately $36,000 followed by a resilient rebound. The advent of the Bitcoin spot ETF has brought considerable attention to the market, with its impact closely monitored.

The recent descent of Bitcoin's price to $39,000 has raised concerns regarding the influence of ETFs, as investors' optimistic expectations of a bull run are now overshadowed by the possibility of a disappointing downturn. TradeFi's subdued interest in the ETF has played a role in the anticipated decline of Bitcoin.

According to Matrixport's analysis, Bitcoin is expected to reach a low point at $36,739 before initiating a recovery. Despite the initial challenges faced by the ETF market, Bitcoin's robust foundation and liquidity are anticipated to support its bounce back.

In a related development, Grayscale's Bitcoin spot ETF GBTC experienced a net outflow of $394 million on January 25. However, the rate of outflows slowed over a three-day period, suggesting a potential reversal in trends.

The market dynamics are also witnessing a notable shift, as ETF issuers, engaging in substantial Bitcoin purchases, emerge as influential players. The industry is now grappling with the consequences of these actions on Bitcoin's price trajectory.