Markets
Bitcoin Peaks at $120,000 in Late 2024, Big Alt Season to Follow: Bitfinex
Crypto Exchange Analysts Bitfinex on Friday described a potential Bitcoin (CRYPTO: Bitcoin) peak at least $120,000 during the current market cycle, which they expect continue until the end of 2024 or beginning of 2025.
This prediction is based on historical patterns and on-chain indicators, which suggest a correlation between Bitcoin’s halving event and its subsequent price spike.
While some analysts project higher target prices, Bitfinex emphasizes the importance of reacting to market movements rather than relying on long-term forecasts.
They also recognize the growing investment in alternative crypto assets, potentially influencing Bitcoin’s dominance.
Metrics suggest room for growth:
The Market Value/Realized Value (MVRV) ratio, a key metric used to assess market sentiment, is currently at 2.56.
Historically, Bitcoin market tops have occurred when this ratio exceeds 3.2.
This suggests there may be room for further price appreciation before a potential correction.
Altcoin Season on the Horizon:
The Bitfinex report predicts a significant altcoin season coinciding with Bitcoin’s peak.
Sectors poised for strong performance include Decentralized Finance (DeFi), driven by continued innovation and adoption.
Furthermore, AI and meme coins are expected to continue to be prominent narratives throughout the cycle.
Real-world assets (RWAs) are also highlighted as a potential area of growth.
Read too: Bitcoin rises to $72,000 and then drops $1,300 after US jobs report: what happened?
Potential challenges for the market:
The report identifies several factors that could trigger a crypto winter, a period of prolonged market decline. These include:
- Regulatory Crackdowns: Increased government scrutiny and stricter regulations could diminish investor confidence and lead to sell-offs.
- Macroeconomic Factors: A significant global economic recession or major financial crisis could negatively impact the crypto market.
- Market saturation: As prices reach unsustainable levels, a natural correction driven by profit taking and market saturation is expected.
On-chain indicators provide guidance:
While acknowledging the limitations of long-term price predictions, Bitfinex analysts emphasize the importance of using historically relevant metrics.
They highlight key network indicators such as the MVRV index, hash rate stability, and HODL waves of realized capitalization to gauge market sentiment and investor behavior.
Looking to the future:
The Bitfinex report offers valuable perspective on the potential trajectory of the cryptocurrency market.
With Bitcoin poised for continued growth and altcoins positioned to capitalize, investors face exciting opportunities and potential challenges.
Interested in delving deeper into the future of Bitcoin, altcoins and evolving regulatory landscape? Join the conversation on Benzinga Future of digital assets event on November 19th.
Read next: Why Roaring Kitty ‘Already Won’ According to Crypto Traders
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