- Bitfinex predicts total crypto market cap will double to $3.2 trillion due to global expansion, metrics suggesting a new market cycle, institutional investment, and global adoption trends.
- Bitfinex launched a platform in Vietnam, reflecting confidence in crypto’s growth potential amid high adoption there.
- Factors driving the prediction include metrics like the crypto fear/greed index hitting “extreme greed”, a mid-year Bitcoin bull market, and the MVRV metric indicating valuations like mid-2019.
Bitfinex predicts the total cryptocurrency market capitalization, currently around $1.6 trillion, will double to $3.2 trillion according to its year-end report. Despite regulatory and reputation challenges, the company remains bullish on crypto growth in 2023.
Bitfinex recently launched a platform for Vietnam as part of its global growth strategy. With high crypto adoption, Vietnam reflects the exchange’s confidence in crypto’s potential.
Factors Behind the 2X Prediction
Several metrics suggest a market cycle similar to previous ones. Bitfinex expects the crypto fear/greed index to hit “extreme greed” amid a mid-year Bitcoin bull market.
Institutional investment will likely drive early growth, favoring Bitcoin initially. However, flows may shift to higher-risk assets later in 2024.
The MVRV metric indicates valuations like mid-2019 and 2016, suggesting dips before sustained recoveries. Bitfinex sees Bitcoin fluctuating before a major upswing.
Miners are upgrading for the upcoming halving event. Bitfinex believes the market is healthy, with rising Bitcoin prices and limited miner selling pressure.
Global Adoption Trends
Countries like El Salvador and Argentina show growing Bitcoin adoption. Bitfinex expects global crypto users to reach 950 million as people seek inflation hedges.
Inflation should moderate but geopolitics and oil supply cuts could drive headline inflation. High inflation would reinforce Bitcoin’s “digital gold” status.