Markets
Bitcoin peak of $120,000 by end of 2024, major alternative season to watch: Bitfinex
Analysts at Crypto Exchange Bitfinex Friday, he highlighted a potential Bitcoin (CRYPTO: BTC) a peak of at least $120,000 during the current market cycle, which they expect to continue until the end of 2024 or the beginning of 2025.
This prediction is based on historical patterns and on-chain indicators, which suggest a correlation between Bitcoin’s halving and its subsequent price peak.
While some analysts predict higher price targets, 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, which may influence Bitcoin’s dominance.
The metrics suggest room for growth:
The market value to realized value ratio (MVRV), a key metric used to gauge market sentiment, currently stands at 2.56.
Historically, Bitcoin market highs occur when this ratio exceeds 3.2.
This suggests that there could be room for further price appreciation before a possible correction.
Altcoin season on the horizon:
The Bitfinex report predicts a significant altcoin season coinciding with the Bitcoin peak.
Sectors poised for strong performance include decentralized finance (DeFi), fueled by continued innovation and adoption.
Additionally, AI and meme coins are expected to remain important narratives throughout the cycle.
Real-world assets (RWA) are also highlighted as a potential growth area.
Read also: Bitcoin Rises to $72,000, Then Falls $1,300 Following 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 oversight and stricter regulations could undermine investor confidence and lead to sell-offs.
- Macroeconomic factors: A significant global economic downturn or major financial crisis could negatively impact the crypto market.
- Market saturation: As prices reach unsustainable levels, a natural correction caused by profit-taking and market saturation is expected.
On-chain indicators provide guidance:
While recognizing the limitations of long-term price predictions, Bitfinex analysts emphasize the importance of using historically relevant metrics.
They highlight key on-chain metrics such as MVRV ratio, hash rate stability, and HODL cap waves made to gauge market sentiment and investor behavior.
Looking forward:
The Bitfinex report offers a valuable perspective on the potential trajectory of the cryptocurrency market.
With Bitcoin poised for continued growth and altcoins positioned to capitalize, investors face both exciting opportunities and potential challenges.
Interested in delving deeper into the future of Bitcoin, altcoins and evolving regulatory landscape? Join the conversation at Benzinga The future of digital assets event on November 19.
Read next: Why Roaring Kitty “already won,” according to crypto traders
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