As we approach the year 2024, market strategists at Bitfinex express optimism for Bitcoin and cryptocurrencies, citing their resilience in the face of regulatory and reputational challenges. According to these analysts, the crypto market is navigating between episodes of greed and regulation, poised for potential growth as market capitalization may double.
Bitfinex report reveals a positive outlook for the economy
In their latest report, Bitfinex suggests a positive outlook for the crypto economy, anticipating a potential increase in market capitalization to $3.2 trillion in 2024. The analysts point to a shift towards “extreme greed” in the crypto fear and greed index, indicating a vibrant market phase, particularly for Bitcoin, with potential mid-bull market highs. One key factor contributing to this optimism is the increasing interest of institutional investors in crypto assets, notably Bitcoin.
The imminent arrival of spot Bitcoin exchange-traded funds (ETFs) is seen as a catalyst that could redirect some capital into higher-risk crypto assets. Despite this, Bitfinex strategists believe Bitcoin will likely maintain its favored status among institutional portfolios, especially in the first half of 2024. The market value to realized value (MVRV) metric, which provides insight into Bitcoin’s market versus realized value, suggests a market environment reminiscent of the bullish recoveries observed in the mid-2010s.
The report emphasizes the significance of 2024 as a halving year, highlighting the crucial role of miner profitability and behavior. The forecast indicates a healthy market with ample growth potential and anticipates limited selling pressure from miners. Bitfinex’s Alpha report also delves into Bitcoin’s adoption trajectory in countries such as El Salvador and Argentina. It sees this trend as part of a larger movement where crypto assets, especially Bitcoin, are embraced as hedges against economic instability.
Global adoption and macroeconomic factors
The report underscores the global adoption curve, projecting a steepening trend in 2024, fueled by initiatives like El Salvador’s focus on Bitcoin infrastructure and Argentina’s shift towards decentralized assets. Looking at the broader landscape, Bitfinex’s predictive analysis anticipates a significant surge in global cryptocurrency ownership. The researchers project that the number of cryptocurrency owners worldwide could rise to between 850 and 950 million individuals. This surge, they argue, reflects an increasing acceptance and integration of cryptocurrencies, particularly Bitcoin, into mainstream economic activities.
The report noted that as we look into 2024, contingent upon market conditions, there is an anticipation that the number of global cryptocurrency owners could increase to between 850 and 950 million. The monthly rate of growth is expected to rise by over 3.8-4.4 percent, assuming the current bullish market conditions persist throughout 2024. This projection underscores the growing global interest in and acceptance of cryptocurrencies. Furthermore, Bitfinex’s report concludes by examining the broader macroeconomic outlook for 2024.
It suggests a trend of stabilizing wage growth and manageable inflation levels. Despite existing geopolitical tensions and economic variabilities, the forecast predicts a moderated inflation rate and a more efficient global economy. These factors are expected to contribute to a generally stable market environment conducive to the continued growth of crypto assets. Bitfinex’s analysts are optimistic about the prospects of Bitcoin and the broader cryptocurrency market in 2024.
The anticipated growth is attributed to factors such as institutional interest, the potential impact of Bitcoin ETFs, and global adoption trends seen in countries like El Salvador and Argentina. The report envisions a significant increase in global cryptocurrency ownership, highlighting the expanding acceptance of cryptocurrencies in mainstream economic activities. Additionally, the macroeconomic outlook for 2024 is predicted to support a stable environment for the growth of crypto assets.
