Leading cryptocurrency services firm Matrixport predicts that when the year draws to a close, Bitcoin will reach $56,000. This forecast is consistent with Bitcoin’s historical pattern of continuing to gain significant traction in the last months of the year. As per Markus Thielen, Head of Research and Strategy at Matrixport, there is a strong likelihood of a late-year rally—sometimes called the ‘Santa Claus Rally’—increasing the value of Bitcoin.

As of right now, the price of Bitcoin is above $35,000. This represents an incredible 114% increase in just one year. Numerous factors have contributed to this increase, including expectations for the possible launch of a spot exchange-traded fund (ETF) and conjecture that the Federal Reserve may ease its liquidity-tightening policies. The increased desire for assets that serve as havens is also supporting the value of Bitcoin.

The Potential of Bitcoin as Seen by Matrixport

Based on more than ten years of historical Bitcoin performance, Thielen’s analysis suggests that there is a good chance (roughly five out of seven times) that Bitcoin will end the year at a higher value if it experiences a 100% or greater increase within the first ten months of the year. Year-end rallies typically have an average return of +65%.

Furthermore, Thielen noted a remarkable 78% chance of additional growth by year-end if Bitcoin shows a minimum gain of +50% by the end of October. In seven of the nine previous cases, the historical tendency has shown that Bitcoin increased by an extra +68% by the end of the year, demonstrating a steady pattern.

Possibility of Year-End Hopefulness

Matrixport’s forecasts offer a positive picture of Bitcoin’s performance in the last months of the year, consistent with a historically verified trend called the ‘Santa Claus Rally.’ As the year concludes, investors and cryptocurrency fans can look forward to these predictions with enthusiasm and hope.