In A Nutshell:
Bitfinex analysts predict that bitcoin's current bull market cycle could peak in Q4 2024, potentially reaching at least $120,000, driven by historical patterns and key metrics such as the MVRV ratio.Analysts at crypto exchange Bitfinex predict that the current bitcoin bull market cycle may peak in the fourth quarter of 2024. "Historical data suggest that bitcoin typically reaches its new all-time high (ATH) several months after the halving event. Therefore, we predict the market top could occur around Q4 2024," Bitfinex analysts stated in a note to The Block.
The analysts explained that bitcoin historically reaches its market peak when a specific ratio, the market value to realized value (MVRV) ratio, exceeds 3.2. Currently, the MVRV ratio is around 2.56, indicating significant unrealized profit and suggesting potential for further growth before bitcoin hits its peak. "Key metrics such as the MVRV ratio indicate significant unrealized profit, with a current MVRV value of around 2.56. Historically, bitcoin market tops occur when the MVRV ratio exceeds 3.2," they added.
Bitfinex analysts forecast that during the current cycle, Bitcoin could reach at least $120,000. "Based on on-chain indicators and historical patterns, bitcoin is expected to reach a peak of at least $120,000 during this cycle." They noted that while some price targets suggest bitcoin could rise much higher, they believe these estimates are overoptimistic.
"Investment in crypto assets may begin to diversify away from bitcoin and into instruments such as forthcoming ether ETFs and other altcoins," the analysts suggested.
As of 7:28 a.m. ET, bitcoin, the world's largest digital asset by market cap, had increased by around 0.5% over the past day and was trading at $71,295, according to The Block's Price Pages.
