In a recent Bitfinex Alpha report, analysts have presented an optimistic outlook for the cryptocurrency market in 2024. The report forecasts a substantial increase in the market capitalization, reaching $3.2 trillion next year. According to the experts, global cryptocurrency ownership is expected to surge from the current 575 million to a range between 850 and 950 million.
The anticipation of “extreme greed” sentiment in 2024, as indicated by the Crypto Fear and Greed Index, correlates with expectations of new highs for Bitcoin in the middle of the bull market. Bitfinex suggests that this positive trend has been due to the increasing exposure of crypto assets by institutional investors in anticipation of the Bitcoin ETF.
The analysts advise considering the market value of Bitcoin concerning its realized value, using the MVRV (market-value-to-realized-value) metric in the short term. This metric provides insights into the market sentiment and whether it is a bullish or bearish trend.
Despite the positive projections, the report maintains a cautious tone, noting that these forecasts depend on the market conditions. Furthermore, the analysts highlight the cryptocurrency market’s current state as “healthy,” indicating ample room for potential growth in Bitcoin prices. Importantly, limited expected selling by miners adds to the overall positive sentiment.
Matrixport analysts had previously suggested that if spot Bitcoin ETFs were approved in early January, the price of Bitcoin could reach $50,000 by the end of the month. This prediction is based on the historical trends, where Bitcoin prices often experienced an upswing between Christmas and New Year.
According to a recent report that used DefiLlama’s on-chain analytics data to analyze top cryptocurrency exchanges, Bitfinex ranks third with $11.746 billion in assets. The breakdown shows that Bitfinex primarily focuses on Bitcoin, with $7.69 billion allocated to BTC. Additionally, Bitfinex holds $2.596 billion in its native token, LEO, and $0.77 billion in Wrapped Ether (WETH). This distribution indicates Bitfinex’s strategy to join major cryptocurrencies while using its native token as a benefit for added utility.
