U.S. institutions may have been supporting Bitcoin’s rally in January, when the cryptocurrency rose more than 38%. The start of the year tends to be positive for token prices, crypto services provider Matrixport said in a Wednesday research note.
In five of the six years bitcoin has rallied in January, the cryptocurrency ended the year with a positive return. On average, the remainder of the year is up more than 245%, wrote research director Markus Thielen.
The report said Bitcoin had its only down year after a strong January in 2014, when the price had just reached the peak of the bull market. According to Matrixport, the driver of the 2023 bull run could be the expected March 2024 Bitcoin halving cycle, when the number of cryptocurrencies entering the system drops by 50% every 10 minutes.
As a result, the statistical probability that Bitcoin’s price could double between now and the end of the year is high, the report said. This means that bitcoin prices could reach $45,000 by Christmas, the report added.