Bitfinex Analysts Predict Cryptocurrency Market Cap of $3.2 Trillion – Insights for 2024

Bitcoin and the broader cryptocurrency market face regulatory challenges and reputational hurdles in 2023, but prominent cryptocurrency exchange Bitfinex envisions a bright future.

Following Bitcoin’s impressive 160% increase last year, Bitfinex analysts predict that the overall cryptocurrency market will grow another 100%, reaching a potential total value of $3.2 trillion by 2024.

Favorable macroeconomic conditions

In the face of intermittent downturns and historic market behavior, Bitcoin has shown remarkable resilience, playing a pivotal role in the expansion of the cryptocurrency market, resulting in an $800 billion increase in investor wealth in 2023.

Meanwhile, the report highlights the positive forecast by examining how broader economic conditions could affect cryptocurrency asset prices. Factors such as wages, demand, and inflation are expected to drive further investment in cryptocurrencies.

Unlike 2022, which was marked by plummeting asset prices and economic uncertainty, this year saw increased institutional interest, with Bitcoin posting significant gains and attracting $1.6 billion in institutional funds.

Bitfinex’s forecast projects a potential total market capitalization of $3.2 trillion in the coming years, taking into account current market conditions, historical cycles, and various sentiment indicators.

Bitfinex highlights the changing landscape of institutional investing, highlighting an upcoming spot Bitcoin ETF. The exchange expects institutional preference for Bitcoin to remain strong, especially in the first half of 2024, as it expects capital to move towards riskier cryptocurrency assets.

Using the Market Value to Realized Value (MVRV) metric to gauge near-term market dynamics, Bitfinex suggests a pullback is likely after the $44,000-$45,000 area.

Cryptocurrency users soar to 850 million

The optimistic forecast extends to the rise of new digital asset users. The report predicts that if the current situation continues, the number of cryptocurrency users will increase from 575 million to 850 million to 950 million. The report supports this trend globally and highlights growing adoption and use cases.

Coinbase CEO Brian Armstrong emphasize The importance of cryptocurrencies in the upcoming US elections, considering that approximately 52 million Americans use digital assets.

Factors such as El Salvador’s adoption of Bitcoin and the Argentine president’s supportive stance on Bitcoin will contribute to a potential industry boom next year. Additionally, increased mining activity with the upcoming halving has attracted more investments into the sector.