The Expected Growth of the Crypto Market in 2024
Next year, the crypto market is projected to experience significant growth as it enters a bull run. This growth can be seen in the increase in the total market cap and the number of individuals who own digital assets worldwide.
According to the Bitfinex Alpha report, the total crypto market cap is expected to fluctuate between $1.6 trillion and $3.2 trillion, while the number of global crypto owners could rise from 575 million to between 850 and 950 million.
Crypto Market Cap Estimated to Reach $3.2T in 2024
On-chain metrics indicate that the crypto market has transitioned from a bear season to a bull run. This can be observed in the rising prices of various cryptocurrencies, including bitcoin (BTC), which has surged by over 158% in the past year.
Bitfinex analysts believe that this bull market has significant potential and could establish BTC as a multi-trillion dollar asset class, providing substantial value to investors. They have identified several metrics to monitor as the market progresses in 2024.
Bitcoin Miners Prepare for Upcoming Halving
In addition, Bitcoin’s dominance is continuing to grow, and institutional investments are expected to favor BTC as the leading crypto asset for at least the first six months of next year. This growth in market dominance is attributed to anticipated approvals of spot Bitcoin exchange-traded funds (ETFs) in the U.S.
Furthermore, Bitcoin miners are preparing for an upcoming halving event scheduled for April, which will reduce BTC’s production rate by half. Miner exchange flows serve as indicators of market sentiment, signaling expectations of price increases or active sales of BTC for upgrading mining machinery.
An Anticipated Surge in Global Crypto Owners
As the digital asset ecosystem expands and the total market cap grows, there will be an increase in BTC and crypto adoption worldwide. It is expected that the number of global crypto owners will reach new heights, with countries like El Salvador, Argentina, and Lugano leading the way.
Countries such as El Salvador and Lugano have already recognized BTC as legal tender and launched various Bitcoin-related initiatives. In Argentina, individuals have turned to crypto assets due to inflation rates and economic volatility.
“We believe that in 2024, there will be a focus on strengthening the infrastructure to support Bitcoin transactions. This includes initiatives to increase public awareness and education about Bitcoin, particularly among those who have been excluded from the formal banking system,” said Bitfinex analysts.
Hot Take: The Crypto Market’s Promising Future
The crypto market is poised for significant growth in 2024, with projections of a higher market cap and an increase in global crypto owners. As the bear season transitions into a bull run, cryptocurrencies like bitcoin are expected to thrive. Bitcoin’s dominance is also on the rise, attracting institutional investments. Additionally, upcoming events like the halving are being closely monitored by miners. Countries around the world are embracing crypto adoption, with some recognizing BTC as legal tender. The focus on infrastructure development and education about Bitcoin is expected to intensify throughout the year. Overall, the future of the crypto market looks promising.
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