The latest Bitfinex Alpha report presents a bullish forecast for the crypto market in 2024. It suggests an optimistic outlook, projecting the cryptocurrency sector’s market capitalization to surge to $3.2 trillion, a significant leap from the current standing.
Estimating a notable increase in the number of global cryptocurrency owners, the report speculates a growth range between 850 and 950 million, up from the current 575 million. This surge is anticipated based on the evolving market conditions and trends.
The report’s predictions regarding sentiment indicators, particularly the Crypto Fear and Greed Index, hint at an expected shift to “extreme greed” sentiment. This sentiment is anticipated to coincide with new highs for Bitcoin, aligning with a bullish mid-bull market phase.
Furthermore, as institutional investors expand their exposure to crypto assets, potentially catalyzed by the awaited approval of spot Bitcoin ETFs, there might be a shift of capital toward higher-risk crypto assets in the upcoming year.
Delving into market metrics, analysts highlighted the significance of the MVRV (market-value-to-realized-value) metric in assessing Bitcoin’s current state. They emphasize that the crypto market appears to be in a “healthy” condition, creating ample space for potential Bitcoin price surges. Additionally, they foresee limited selling pressure from miners, further supporting the potential for upward price movements.
Past analyses by Matrixport suggested that the approval of spot Bitcoin ETFs in early January could drive Bitcoin’s price to $50,000 by month-end. This aligns with historical trends that showcase price hikes for Bitcoin between the Christmas and New Year period, echoing a notable increase of 22% in 2020 during these days.
The experts’ prior prediction of Bitcoin reaching $45,000 by the year-end is also reiterated, pointing to the historical price trends that have often witnessed upward movements during this time frame. Overall, the Bitfinex report paints a positive picture for the crypto market in 2024, hinting at significant growth potential and positive sentiment indicators.
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