Bitfinex Predicts $3.2 Trillion Crypto Market Cap by 2024 on Bitcoin’s Record Run

The post Bitfinex Predicts $3.2 Trillion Crypto Market Cap by 2024 on Bitcoin’s Record Run appeared first on Coinpedia Fintech News

Bitfinex, a significant player in the crypto industry, has high expectations for the market in 2024. Building on the remarkable performance in 2023, with Bitcoin surging by 160% and the broader crypto market gaining 100%, the exchange anticipates another striking rally. This surge could potentially add an impressive $800 billion to investors’ crypto portfolios.

Crypto Rally Expectations and Market Expansion

Presently, the crypto market sits at around $1.6 trillion. Bitfinex predicts a staggering rise to $3.2 trillion in the overall market cap for 2024. Their analysis integrates historical market patterns and sentiment indicators, suggesting a shift towards ‘extreme greed.’ This sentiment shift might act as a catalyst, propelling Bitcoin and the broader crypto market to new highs. 

According to Bitfinex analysts, Bitcoin has experienced a record 67 consecutive days of net realized profitability, resembling a trend seen in previous bull markets that typically precede market corrections. This prolonged streak, reminiscent of the period from October 2020 to February 2021, historically signals potential market corrections.

Their report highlights parallels between current Bitcoin valuations and historical patterns observed around June 2019 and July 2016. These comparisons indicate that after Bitcoin reaches the $44,000-$45,000 range, the market might witness a pullback or consolidation rather than an immediate surge, aligning with previous market behaviors.

The Bitfinex analysts project the entire cryptocurrency market to witness potential pullbacks before potentially reaching a high of $3.2 trillion by the end of 2024, providing insights into the expected market movements based on historical trends.

Institutional Focus on Bitcoin

While the market eagerly anticipates the arrival of a spot Bitcoin ETF, Bitfinex foresees institutional investors primarily favoring Bitcoin, especially in the first half of 2024. However, amidst this optimism, the exchange predicts a potential price pullback in the $44,000-$45,000 range. This anticipated dip might lead to consolidation or a moderate decline, instead of an immediate upward surge.

Monitoring Bitcoin miner activity becomes pivotal, particularly in a halving year like 2024. As the reward for mining reduces, efficient operational strategies are imperative for miners. Bitfinex suggests subdued miner activity due to limited incentives to sell Bitcoin amid escalating prices.

Bitfinex’s Ongoing Commitment

Beyond market forecasts, Bitfinex recently announced a $150 million share buyback to support hack victims, emphasizing their commitment to industry stability and investor trust.

This comprehensive analysis offers insights into potential market movements, investor sentiments, and key factors shaping the crypto landscape in 2024, establishing Bitfinex as an informed voice within the industry.