Bitfinex Market Analysts Predict $3.2 Trillion Crypto Market Capitalization – Here’s More
Bitfinex analysts say the digital asset market capitalization could hit $3.2 trillion if bullish factors remain amid soaring prices towards the end of the year.
In a new market report, the firm made market projections ahead of the new year with present market forces and indices highlighting the growth recorded so far amid regulatory challenges in several jurisdictions.
According to the report, 2024 is met with a positive outlook from several quarters in the industry because of the drive of investors and asset prices pushing through despite a shaky start of the year.
Market analysts at the company predict the total market capitalization to tap $3.2 trillion with present bullish sentiment trickling into the new year. With the current market cap at $1.6 trillion, an uphill run hinged on several factors including institutional inflows on the back of a spot Bitcoin ETF.
The report touches on how wider macroeconomic conditions can affect the prices of crypto assets, noting a positive outlook ahead. Citing wages, demand, and inflation, cryptocurrencies can expect more inflows after a horrid 2022 riddled with plunging asset prices and gripping macroeconomic factors.
This year with slowing inflation, investors continue to increase exposure to digital assets unlike in previous months when risky assets recorded exits. In the last two months, Bitcoin has posted massive gains soaring above $43,000 and hitting $1.6 billion in inflows in institutional funds.
“The inflation rate is also projected to decline in 2024. A combination of factors, including a subdued global economy and more efficient supply chains, is expected to keep commodity prices in check and support the manufacturing sector. An uptick in labor supply, observed in the
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