Matrixport: Market Generally Expects Bitcoin to Break All-Time High, Price Action May Continue Into Summer

BlockBeats News, May 16th, Matrixport released its weekly report stating that Bitcoin has rebounded to the upper range of the consolidation zone ($106,000). Driven by multiple bullish catalysts, the market generally expects it to break through its all-time high. With the gradual alleviation of downside risks in this stage, the upward path of Bitcoin's price has become increasingly clear. Trump's recent shift in focus towards fundraising and trading cooperation has further boosted market optimism towards both the stock market and Bitcoin. If Trump-era tax reduction policies continue, coupled with potential regulatory easing measures, they may further boost market expectations for economic growth, driving a reassessment of growth prospects and bond yield repricing.

In the current context, risk assets, especially Bitcoin, are expected to enter a favorable trading window before July. This period coincides with the end of the 90-day tariff truce, the start of the second-quarter earnings season, and the peak expected in the liquidity metrics we are tracking. Another key catalyst is the upcoming launch of FTX's debt repayment process, targeting accounts with debt amounts exceeding $50,000, expected to start around May 30, 2025. This round of repayments is expected to distribute around $5 billion in stablecoins, a significant portion of which may flow back into the crypto market. This additional liquidity may drive market momentum in June, synergizing with the continued inflow of funds into Bitcoin ETFs and active stablecoin trading.

Since Bitcoin broke through the $84,500 technical level in mid-April, it has maintained a constructive bullish view. Despite Bitcoin's rise of about $20,000 (approximately 25%), we still believe that the upward momentum is not exhausted, and the market is expected to continue into the summer.