Bitcoin Tracks Remarkable Path Predicted
Yesterday, we got another inflation data point with CPI YoY declining to just 3.0% (we expected 2.0-3.0% by year-end when CPI was 7.7%).
👇 1) As our macroeconomic models strongly suggested that U.S. inflation had peaked, ‘Matrix on Target’ published ‘With a macro tailwind, Bitcoin might be at $29k in 2023’ on December 2, 2022.
👇 2) By then, prices had declined to $17,000 and most market participants were expecting prices to fall even further to $15,000, with some even arguing that it could decline further to $10,000.
👇 3) With the mid-halving low offering a buying opportunity, our macro-inflation model projected a strong tailwind for the year ahead. This analysis projected +70% upside for Bitcoin in 2023.
👇 4) Many market participants argued that the Bitcoin bear market would continue in 2023 as the overhang from the crypto bankruptcies and the expected regulatory backlash would cause prices to stay low through the year.
👇 5) ‘Matrix on Target’ had a different view, based on proven and reliable data analysis.
👇 6) By February 3, 2023 ‘Matrix on Target’ published another symmetrical data point as the ‘January Effect – Bitcoin to $45k by December’ report suggested a continuous rally throughout the year would follow a strong January.
👇 7) Historical data showed that Bitcoin had rallied in five out of six years when prices rose in January, and the last two instances resulted in Bitcoin effectively doubling.
👇 8) When Bitcoin was trading at $23,400, ‘Matrix on Target’ projected a year-end target of $45,000 — driven by the tailwind of lower inflation numbers as the Federal Reserve became less hawkish on future interest rate hikes.
👇 9) This led us to put forward our projected target for the year on February 3 2023, and we projected that by July 12 2023 (the nearest date when today’s report is published), Bitcoin would be trading at $31,799.
👇 10) Bitcoin is currently trading $30,300, which is just 4% away from our projected level based on the anticipated path.
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