BitMEX co-founder Arthur Hayes believes that the total market cap for Bitcoin (BTC) and other digital assets could soar by more than $1.3 trillion this year.
In a new essay, the crypto veteran predicts that in 2024 the total market capitalization for all digital assets could reach or beat the all-time high (ATH) market cap, which was hit in 2021.
“The bull market is just beginning. 2024 will be a choppy year with regards to price action, but I still expect by year-end, we will be at or above an all-time high in the market cap of Bitcoin and the entire crypto complex.”
The current total market cap for digital assets is $1.764 trillion at time of writing. That means the market cap would need to grow by $1.314 trillion to hit the all-time high market cap of $3.078 trillion, which was reached on November 9th, 2021.
Hayes is predicting that the market cap will likely soar around March when the Fed might take action to inject more liquidity into the market, which tends to cause risk assets like Bitcoin to rally.
He expects the Fed might announce rate cuts in March as well as renew the Bank Term Fund Program (BTFP), a program launched last year at the height of the banking crisis to provide liquidity to banks that are struggling to meet withdrawal requests.
“Be not dismayed by the lackluster price performance of Bitcoin since the ETFs (exchange-traded funds) began trading last week. All around the world central bankers and governments are creating the reasons why the money printer must go brrr. Once the narrative is in place, and a sufficient crisis allows the politicians and bureaucrats to use the fear of a financial systemic collapse to frighten the public into accepting more destructive fiat debasement, money will gush out of central banks and we will enter another leg up in the crypto bull market.
While I didn’t expect this sort of price action, it wasn’t an outcome I ignored. It only reinforces my choice not to add any crypto risk to my portfolio until the middle of March once the BTFP renewal and Fed rate decisions are behind us.”
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