Bitfinex Predicts Crypto Market Cap to Hit $3.2 Trillion

reportcryptos.com
4 Min Read

Analysts at the popular crypto exchange Bitfinex expect the crypto market to double its current value over the next twelve months. 

The global cryptocurrency market cap has doubled since the start of the year, moving from $800 billion to $1.6 trillion. Several top cryptocurrencies have seen triple-digit gains, with Bitcoin specifically set to close the year with over 150% gains from the past twelve months. 

However, popular cryptocurrency exchange Bitfinex expects things to get even more exciting in the coming year. In a 52-page report titled Bitfinex Alpha, the exchange shared an overview of the current crypto and macro landscape and made projections for 2024.

A significant highlight from the report is that the cryptocurrency market cap will see over 100% growth within the next month. Its value would soar as high as $3.2 trillion, surpassing the record $3 trillion set during the most recent bull market in 2021, Bitfinex predicts.

Per the report, growth would largely be driven by a number of factors. Prime among them is the impending launch of a spot Bitcoin ETF in the United States. Bitfinex described the widely anticipated rollout as “a significant milestone in the maturation of the cryptocurrency market,” arguing that it would pave the way for more institutional and passive investment capital to find its way into the crypto industry. 

Another potential driver of price action will include increased adoption of Bitcoin and cryptocurrencies in inflation-prone regimes like Argentina. A nation-state like El Salvador, which is developing Bitcoin-focused infrastructure and fostering education, will also contribute to favorable BTC prices, according to the report. 

In the meantime, Bitfinex noted that Bitcoin’s latest consolidation below $44,000-$45,000 mimics price action in June 2019 and July 2016, when Bitcoin struggled to overcome major resistance levels. Yet, a break above the zone and new highs eventually followed, as should be the case for BTC next year.

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Retail Adoption Projected to Reach New Highs

Looking beyond institutional and nation-state adoption, the Bitfinex report forecasts an increase in the number of retail investors. Precisely, the report predicts that the number of crypto owners globally will jump from its current value of 575 million to between 850 million and 950 million within the next twelve months. 

Bitfinex Number of Crypto Users

The growth will come from mainstream investors embracing trends such as artificial intelligence, real-world assets (RWAs), and Web3 gaming. The report highlights the growth that these novel crypto niches have seen in the past year, citing them as evidence of further gains as the market enters a fully bullish phase. 

Notably, Bitfinex is not alone in projecting that the crypto market will reach new highs in the coming year. Many leading fund managers, including SkyBridge Capital, Fundstrat, and Morgan Creek, expect Bitcoin to surpass $100,000 in the coming year following the approval of a spot Bitcoin ETF.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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