As 2024 approaches, Bitfinex market strategists have expressed optimism for bitcoin and crypto assets in general, acknowledging their resilience amid regulatory and reputational challenges. The crypto market, according to Bitfinex analysts, is oscillating between bouts of greed and regulation and is set to witness an upward trajectory with market capitalization possibly doubling.
Bitfinex Analysts Forsee a Bullish Trajectory for Bitcoin and Crypto Assets Amidst Macro Stability
The year 2024 is eyed with optimism, with Bitfinex analysts suggesting a potential market cap for the crypto economy increasing up to $3.2 trillion amidst historical pullbacks and market oscillations. The latest Bitfinex Alpha report says a shift towards “extreme greed” in the crypto fear and greed index suggests mid-bull market highs for bitcoin (BTC), indicating a vibrant market phase.
Bitfinex researchers explain that institutional investors’ rising interest in crypto assets, particularly bitcoin, is pivotal. The much-anticipated spot bitcoin ETFs act as a catalyst, potentially shifting some capital into higher-risk crypto assets. Nonetheless, Bitfinex strategists say bitcoin is expected to retain its favored status among institutional portfolios, especially in the first half of 2024.
The MVRV metric, short for market value to realized value and a lens on bitcoin’s market vs. realized value, hints at a market environment mirroring the bullish recoveries of the mid-2010s. The report details that as 2024 is a halving year, miner profitability and behavior become even more crucial. A healthy market with ample growth room is indicated, with limited selling pressure from miners anticipated.
The Alpha report further says that bitcoin’s adoption trajectory in countries like El Salvador and Argentina reflects a larger trend of embracing crypto assets as hedges against economic instability. The researchers insist that the Salvadoran focus on bitcoin infrastructure and the Argentine shift towards decentralized assets underscore a broader, global adoption curve that’s only set to steepen in 2024.
With Bitfinex’s predictive analysis of the crypto landscape, there’s an anticipation of a significant increase in global cryptocurrency ownership, potentially reaching between 850 and 950 million individuals. This surge, the researchers claim, highlights the growing acceptance and integration of crypto assets like BTC into mainstream economic activities.
“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 as the monthly rate of growth usually increases to over 3.8-4.4 percent if we take 2021 bull market as a reference point and assume the current bullish market conditions to carry over throughout the entirety of 2024,” the report notes. “This projection underscores the increasing global interest in and acceptance of cryptocurrencies.”
Moreover, Bitfinex’s report concludes that the broader macroeconomic outlook for 2024 suggests a trend of stabilizing wage growth and manageable inflation levels. Despite geopolitical tensions and economic variabilities, a moderated inflation rate and a more efficient global economy are expected to contribute to a generally stable market conducive to the growth of crypto assets.
What do you think about Bitfinex’s Alpha report? Share your thoughts and opinions about this subject in the comments section below.
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