Matrixport's Bold Forecast: Bitcoin Soars to $45K in Imminent Breakout

Polygon's MATIC and Chainlink's LINK emerged as the frontrunners in the world of altcoins on Wednesday afternoon. While Bitcoin (BTC) teetered on the edge of the crucial $36,000 threshold, market forces continued their relentless struggle for dominance.

• Bitcoin Gathers Momentum: Sustained U.S. Buying Supports Surge Towards $36,000 
• LINK and MATIC Lead Large-Cap Altcoins with 10% Surge 
• Matrixport Predicts Imminent 'Santa Claus Rally' for Bitcoin

Following a swift retreat of its gains linked to a short squeeze on Tuesday, Bitcoin made another push towards the $36,000 mark in early Wednesday afternoon trading. This surge was fueled by renewed optimism surrounding spot ETFs. However, as of the latest update, the cryptocurrency had retraced slightly, hovering just above $35,500, showing only modest gains over the past 24 hours.

In the realm of alternative cryptocurrencies, Ethereum's scaling network, Polygon, experienced a surge in its native crypto, MATIC, while Chainlink's token, LINK, also demonstrated significant gains, each soaring by an impressive 10% to 11% over the same period.

FalconX, an institution-focused trading platform, reported a steady influx of institutional buy orders for LINK over the past week. Meanwhile, MATIC received a boost from an announcement early Wednesday regarding a collaboration between network developer firm Polygon Labs and the Near Foundation. The partnership aims to develop a cutting-edge zero-knowledge technology-powered tool for blockchain interoperability. Since the activation of the smart contract for the upcoming POL ecosystem token in late October, MATIC has seen an approximate 27% surge, marking a milestone in the comprehensive network upgrade known as Polygon 2.0.

Bitcoin's Potential Breakout Amidst Declining Inflation Trends

In a report released on Wednesday, crypto investment services firm Matrixport asserted that a breakthrough for Bitcoin above the $36,000 mark is on the horizon. This surge is attributed to consistent BTC purchases during U.S. trading hours, coupled with a macroeconomic environment that is increasingly favorable for risk assets. The Federal Reserve's dovish messaging, declining bond yields, and a deliberate slowdown in the issuance of long-term debt by the U.S. Treasury Department have all contributed to this optimistic outlook.

Tension Mounts: Bitcoin Hovers at $35,500, Matrixport Observes Critical Juncture  

Matrixport suggested that next week's U.S. consumer price index (CPI) report may serve as the catalyst for a significant breakout, especially if it reflects a continued deceleration in inflation. 

"The Santa Claus rally could start at any moment,"

 Matrixport commented.

"With a steady increase in buyers during U.S. trading hours and a persistent effort by Bitcoin to break out, we could witness prices rallying into the final stretch of the month and the year."

The group further emphasized, 

"A breach above $36,000 could propel BTC towards our next technical resistance level at $40,000, potentially setting the stage for a climb to $45,000 by the close of 2023." 

The prospect of such a surge underscores the dynamic nature of the cryptocurrency market, as it continues to capture the attention of investors worldwide.

Read More: Surprise Surge in U.S. September CPI; Bitcoin Continues Decline