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- Bitfinex predicts a booming crypto year in 2024, with a potential market valuation as high as $3.2 trillion.
- However, Bitfinex highlighted that the trajectory toward the multi-trillion dollar valuation is not straight.
- Bitcoin is expected to lead the charge, driven by a shift in sentiment from fear to greed and the influx of institutional investors.
Bitfinex has published a new forecast, arguing that the overall crypto market could clock a $3.2 trillion valuation next year. A significant factor contributing to this projection was the shifting sentiment about the future of Bitcoin.
Bitfinex analyzed various metrics and indicators, noting that assessing their performance at comparable stages in the crypto market cycle proves insightful. It discovered that public sentiment towards crypto has moved from extreme fear to greed. The trading platform argued a significant likelihood of an extended period in the “extreme greed” sentiment into 2024.
Also, Bitfinex mentioned that the bullish sentiment is expected to coincide with the emergence of new highs for Bitcoin. Bitcoin currently trades at $42,700, a 38.2% decline from the peak of $68,789.63.
Moreover, the exchange cited the growing involvement of institutional investors in crypto assets to bolster the market. It noted the anticipated introduction of the long-awaited spot Bitcoin ETF could spark a redistribution of capital toward crypto in the upcoming year. Also, Bitfinex expects that institutional investment will mainly lean towards Bitcoin, at least during the initial half of 2024.
Meanwhile, Bitfinex highlighted that the trajectory toward the multi-trillion dollar valuation is not a straight path, noting that pullbacks should be anticipated considering historical market patterns. Nonetheless, it projected that crypto’s market capitalization would fluctuate between $1.6 trillion and $3.2 trillion in 2024.
Notably, the crypto market surpassed the $3 trillion threshold in the last market peak of 2021. Bitcoin alone commanded a valuation of $1.27 trillion. However, the market tanked below $800 billion in the following bear market. With the crypto market gradually recovering, Bitcoin has been projected to reclaim the trillion-dollar threshold to propel other digital assets to comparable feats.
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