In the course of the year 2023, Bitcoin demonstrated outstanding performance by experiencing an increase of over 150%, significantly surpassing the Nasdaq’s increment, which stands at just over 53%. Despite this notable performance, other entities in the blockchain space managed to achieve even more significant gains.
One of the standout performers in this scenario is Coinbase Global Inc. (COIN), one of the leading cryptocurrency exchange platforms, which recorded an increase of over 333%, according to MarketWatch data. This performance places Coinbase in a leadership position compared to BTC’s performance.
Additionally, companies dedicated to Bitcoin mining also experienced substantial increases in their values. Notable examples include HIVE Digital Technologies Ltd, which rose by 164%, and Iris Energy Ltd (NASDAQ: IREN), which surpassed 380%. Bitfarms Ltd (TSE: BITF) was the most benefited, registering an increase of 601% in the last 12 months and 566% in the last month.
Matrixport Highlights All Positive Scenarios for Bitcoin
In its analysis, Matrixport emphasizes the potential for gains by building a diversified portfolio that includes both exchanges and Bitcoin mining companies. Markus Thielen, Head of Research at Matrixport, suggests that, according to a regression analysis, these stocks could increase by 97%, even if the price of Bitcoin remains at $30,000. In the most bullish scenario, with Bitcoin reaching its all-time high of $70,000, stocks could skyrocket to an astonishing 572%.
Matrixport’s report also highlights the increase in BTC transaction fees, partly driven by renewed interest in Bitcoin non-fungible tokens (NFTs). This phenomenon contributed to the revenue growth of some BTC mining companies throughout 2023.
Regarding the future of Bitcoin, Matrixport takes an optimistic stance, projecting a continued bullish market. Their forecast suggests it could reach $63,140 by April 2024 and close the year at $125,000. These projections take into account various factors, such as the macroeconomic environment, monetary policies, geopolitical events, and the historical trend related to Bitcoin mining rewards, which exhibited a bullish behavior during halving years. Additionally, a favorable macroeconomic environment, with a decrease in inflation and potential rate cuts by the Federal Reserve, is expected to provide significant momentum in 2024.
