If 2023 has demonstrated anything, it is the “remarkable resilience” of the crypto industry despite “reputational and regulatory challenges,” according to an update from Bitfinex.
So as we head into 2024, the analysts at Bitfinex foresee “the number of global cryptocurrency owners to rocket up to a significant one Billion users.”
In-depth analysis from Bitfinex on key market makers to anticipate in 2024, along with insights from their analysts has been shared with CI.
Bitfinex Analysts noted:
“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. This projection underscores the increasing global interest in and acceptance of cryptocurrencies.”
Here are a few key trends highlighted by Bitfinex in their predictive analysis:
- Positive Outlook on Bitcoin and Crypto Assets: There’s a strong positive sentiment towards Bitcoin and crypto assets, emphasizing their resilience in 2023 despite challenges.
- Market Volatility Expected: Historical trends suggest potential pullbacks in the crypto market, with the possibility of the total market cap reaching $3.2 trillion.
- Forecast of High Sentiment: The crypto fear and greed index indicates a probable shift to “extreme greed” in 2024, correlating with new Bitcoin highs.
- Institutional Investment Growth: There’s an anticipated increase in institutional investment in crypto assets, especially with the introduction of the Bitcoin ETF, favoring Bitcoin through the first half of 2024.
- Market Value Indicators: Analysis of the Bitcoin market value against its realized value (MVRV metric) suggests a possible market trend similar to mid-2019 and mid-2016, with initial price dips followed by recoveries.
- Bitcoin Miner Activity: With 2024 being a Bitcoin halving year, miner activities and profitability are crucial to monitor, especially regarding their operational efficiency.
- Miner Exchange Inflows: Expect subdued inflow from miners to exchanges for most of 2024, despite potential short-term spikes.
- Puell Multiple Analysis: Current market analysis shows a healthy state with room for Bitcoin price growth and limited miner selling.
- Bitcoin Adoption in Key Markets: Promising growth in Bitcoin adoption, especially in countries like El Salvador and potentially Argentina, due to their economic conditions and openness to decentralized assets.
You may review the complete report here.