As the crypto asset ecosystem expands and the total market value increases, interest in Bitcoin and the crypto sector continues to grow. When the long-awaited rally begins, significant growth in the crypto market is expected in the coming year. This is clearly seen in the increase in total market value and the number of global users owning crypto assets.
Bitfinex Analysts Predict Bull Market
Bitfinex Alpha latest report suggests that the total crypto market value is expected to reach levels between $1.6 trillion and $3.2 trillion, while global crypto holders could increase their funds from $575 million to between $850 and $950 million. Various data on the ecosystem indicate that the crypto market is moving from a bear to a bull market. This situation is clearly seen in the prices of many crypto assets, including Bitcoin, which showed an increase of over 158% last year, despite still being 38% behind its all-time high of $68,000 in 2021.
Bitfinex analysts believe that this bull market has significant potential and could turn Bitcoin into a multi-trillion dollar asset class offering significant value to investors. To this end, experts have identified some data to be monitored as the crypto sector moves towards 2024.
Among these data is the Bitcoin fear and greed index, which typically moves from extreme fear to greed at the beginning of bull market seasons. Analysts see a high likelihood of a long visit to extreme greed while Bitcoin reaches new peaks in the middle of the bull market in 2024.
What to Expect in 2024?
Along with all this, Bitcoin’s dominance in the crypto market continues to increase, and institutional investments are expected to continue favoring the leading crypto asset at least for the first six months of the coming year. The growth in market dominance could be linked to numerous applications for spot Bitcoin exchange-traded funds expected to be approved in the US by January.
Additionally, Bitcoin miners are continuing to prepare for the effects of the planned halving event in April. This event will cut block rewards in half, reducing the production rate of Bitcoin.
Miner exchange flows are important indicators of market sentiment and can signal expectations for further Bitcoin price increases or active Bitcoin sales to update mining machines. Analysts expect miner exchange entries to remain low for much of 2024, as miners anticipate a price increase following the halving event.
