Bitcoin might seem to have encountered a hurdle after reaching $52,000, but the recent downturn is expected to be short-lived. Matrixport’s latest report suggests that Bitcoin’s target of reaching $63,000 by March 2024 remains feasible.

Catalysts supporting this projection include the approval of a Bitcoin spot ETF, the upcoming Bitcoin halving, expectations of an interest rate cut following the Federal Reserve’s FOMC meeting, and the US presidential election.

Fueling Bitcoin’s March 2024 Goal

Following the SEC’s approval of spot Bitcoin ETFs on January 10, there has been an increasing demand for these offerings. Over the past week, spot Bitcoin ETFs have experienced consistent increases in funds, outpacing all other exchange-traded products (ETPs) among the 3,400 available for trading in the United States.

Recent statistics indicate that these ETFs have observed net positive inflows surpassing $2.2 billion for the second consecutive week, spanning from February 12 to 16.

The majority of the funds flowed into BlackRock’s IBIT ETF, which accumulated $1.6 billion. Fidelity’s FBTC followed with the second-highest inflow, drawing $648.5 million last week. During the same period, Ark Invest/21Shares’ ARKB and Bitwise’s BITB garnered $405 million and $232.1 million, respectively.

The report also noted that anticipations of interest rate reductions after the Federal Reserve’s Federal Open Market Committee (FOMC) meetings could sway preferences towards riskier assets such as Bitcoin. Decreased interest rates typically diminish the attractiveness of investments that generate yields, thereby enhancing the appeal of growth-oriented assets.

Matrixport emphasized that the forthcoming US presidential elections and policy uncertainties might also influence Bitcoin prices. Historically, during such periods, investors have often turned to alternative assets like Bitcoin as a hedge against potential shifts in economic policies.

However, predicting the exact impact of these political events on crypto markets is challenging due to their complexity.