Bitfinex analysts have published a new answer about the state of the cryptocurrency market.
The Bitfinex Alpha report contains a forecast for 2024. In it, experts remain optimistic about the prospects for Bitcoin (BTC) and other crypto assets in general. They estimate that the market capitalization of the cryptocurrency sector could increase to $3.2 trillion next year.
“Looking ahead to 2024, and contingent upon market conditions, we anticipate that the number of global cryptocurrency owners could escalate to between 850 and 950 million (from 575 million currently).”
Bitfinex Alpha report
Regarding the Crypto Fear and Greed Index, experts predict “extreme greed” sentiment in 2024, which will correlate with new BTC highs in the middle of the bull market.
Additionally, as institutional investors increase their exposure to crypto assets, catalyzed by the long-awaited spot Bitcoin ETF, there could be some capital shift into higher-risk crypto assets next year.
“In the shorter-term, it is instructive to look at the market value of bitcoin about its realized value: the MVRV [(market-value-to-realized-value)] metric. “
Bitfinex Alpha report
In general, analysts believe that the cryptocurrency market is now in a “healthy” state. This means there will be ample room for Bitcoin prices to rise further, with limited expected selling by miners.
Previously, Matrixport analysts said that if spot Bitcoin ETFs are approved in early January, the price of the first cryptocurrency will rise to $50,000 by the end of the month.
Experts also recalled their forecast of reaching $45,000 by the end of the year. Historically, the price of Bitcoin often rose between Christmas and New Year – in 2020 it increased by 22% during these days.
