The crypto market is expected to grow significantly next year as the bull run sets in. This is evident in a rise in the total market cap and the number of users who own digital assets globally.

According to the latest edition of the Bitfinex Alpha report, the total crypto market cap is anticipated to fluctuate between its current level of $1.6 trillion and $3.2 trillion, while global crypto owners could escalate to between 850 and 950 million from 575 million.

Crypto Market Cap to Hit $3.2T in 2024

Several on-chain metrics indicate that the crypto market has exited the bear season, moving into a bull run. This is obvious in the prices of several cryptocurrencies, including bitcoin (BTC), the leading digital asset, which has surged over 158% in the past year, although it is still 38% shy of its 2021 all-time high of $68,000.

Bitfinex analysts believe this bull market has “considerable potential” and could establish BTC as a multi-trillion dollar asset class, offering significant value to investors. To this end, the experts identified some metrics to monitor as the market navigates 2024.

Among the metrics is the Bitcoin fear and greed index, which shows the market has transitioned from extreme fear to greed, a typical move during the beginning of bull seasons. Analysts see a high chance of an extended visit to the “extreme greed” sentiment in 2024 as BTC reaches new highs in the middle of the bull market.

Bitcoin Miners Brace for Upcoming Halving

Furthermore, Bitcoin’s dominance has continued to grow, and it is expected that institutional investments will continue to predominantly favor the leading crypto asset, at least through the first six months of next year. The growth in market dominance can be attributed to multiple applications for spot Bitcoin exchange-traded funds (ETFs) in the U.S., which are expected to be approved by January.

In addition, Bitcoin miners are bracing themselves for the effects of the upcoming halving event scheduled for April. It will slash block rewards by half, reducing BTC’s production rate.

Miner exchange flows are key indicators of market sentiment, signaling anticipation of further BTC price increases or active BTC sales to update mining machinery. Analysts expect miner exchange inflows to remain low for most of 2024 as miners expect a price surge after the halving.

An Anticipated Surge in Global Crypto Owners

As the digital asset ecosystem expands and the total market cap grows, BTC and crypto adoption will rise to new levels. The number of crypto owners globally is expected to hit new highs, with countries like El Salvador, Argentina, and the largest Swiss city, Lugano, emerging as trailblazers.

El Salvador and Lugano have recognized BTC as legal tender, launching several Bitcoin-themed projects, while Argentinians have turned to the crypto asset amid rising inflation rates and economic volatility.

“We believe that as 2024 unfolds, the focus on bolstering the infrastructure to support Bitcoin transactions is likely to intensify. This includes initiatives to increase public awareness and education about Bitcoin, especially among those who have traditionally been excluded from the formal banking system,” Bitfinex analysts said.