Bitcoin Price Braces for Dip: Matrixport Predicts $36K After Grayscale’s Big Move

The entire crypto market is in a split right now as the king crypto grapples with the looming specter of ETF uncertainties. Bitcoin witnessed a turbulent week, sliding below $40,000 for the first time since December, hitting a low of $38,680 on January 23, 2024. However, in a commendable recovery, Bitcoin has bounced back, currently standing at $40,070 with a 0.3% increase over the past 24 hours. Amidst this market frenzy, Matrixport’s research provides noteworthy insights.

Here’s what they have to say.

Matrixport’s Predictions

Matrixport’s latest research, unveiled on January 26, projects a temporary dip for Bitcoin, anticipating a support level of $36,739. Despite TradeFi’s cautious stance on a Bitcoin spot ETF and GBTC investors capitalizing on profits, Matrixport contends that the market’s liquidity constraints and macroeconomic factors set the stage for a rebound from this pivotal support level.

In a contrasting viewpoint, Matrixport’s research, highlighted by crypto journalist Colin Wu, introduces a divergent perspective. Wu reports that Matrixport challenges the prevailing narrative, foreseeing a dip to $36,739 for Bitcoin. The report attributes this potential correction to TradeFi’s reserved approach to Bitcoin spot ETFs and the ongoing profit-taking trend among GBTC investors.

Meanwhile, Grayscale, having secured approval for spot-based Bitcoin ETFs, strategically moved a significant 103,134 BTC ($4.23 billion) to Coinbase Prime, eliciting varied reactions within the community.

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Turning to Grayscale

Amidst the ETF approval excitement, Grayscale, a prominent crypto asset manager, tactically adjusted its position. According to data from lookonchain, Grayscale transferred a substantial 103,134 BTC ($4.23 billion) to the custodial platform post-approval, with 9,434 BTC marking the most significant move of the week.

Tracing Bitcoin’s Journey

Matrixport’s earlier prediction of a Bitcoin surge to $50,000 post-SEC approval of Bitcoin spot ETFs on January 10 stirred discussions. Despite the approval, Bitcoin currently stands at $40,000, defying Matrixport’s initial optimism. The revised forecast urges caution, suggesting a potential dip to $36,739 before a subsequent ascent.

Also Read: Bitcoin (BTC) Price Can Hit $50K Level Anytime Soon