Source: Pixabay Cryptocurrency financial services company Matrixport has doubled its previous forecast that the price of Bitcoin (Bitcoin-BTC) will reach $45,000 by the end of the year as a wave of fear of missing out (FOMO) penetrates the market for this leading currency.
These expectations came as Bitcoin's market share rose to 52.1%, coinciding with a significant increase in its trading volumes, reaching $29 billion in the past 24 hours.
Unusually high funding rates for BTC futures
Matrixport believes that the resurgence of FOMO is closely linked to the unusually high funding rates for Bitcoin futures, suggesting that many traders are engaging in panic buying.
Earlier this year, Matrixport predicted that Bitcoin would target $45,000, with the Bitcoin price rebounding following growing expectations of the approval of a Bitcoin spot exchange-traded fund (ETF). Accordingly, the aforementioned company doubled its previous expectations.
In the same context, the company indicates that the price of Bitcoin may see another push higher if the US Securities and Exchange Commission (SEC) approves the creation of the BlackRock exchange-traded fund for spot Bitcoin contracts (ETF).
Matrixport reported in its report that if 10% to 20% of gold ETF investors decide to diversify their investments to include Bitcoin, this could lead to potential inflows of $12-24 billion into the Bitcoin ETF. It is also worth noting that these estimates are relatively restrictive, given that the market capitalization of the Gray Scale Bitcoin Fund (GBTC) previously reached a peak of $44 billion.
Approval of Bitcoin ETF could take BTC price to $56,000
Expectations of approval for a Bitcoin spot exchange-traded fund (ETF) have already caused a stir in the market, with BlackRock submitting an application to create the aforementioned fund, which subsequently led to a significant increase in the price of Bitcoin. If the request is approved, Matrixport estimates that the price of BTC could reach $56,000.