Cryptocurrency Market Cap Could Reach $2 Trillion by Year-End, Says Analyst

The past few weeks have been tumultuous for the leading cryptocurrency, Bitcoin, as mass sell-offs ensued following the approval of industry-specific Exchange-Traded Funds (ETFs). Currently, many experts are attempting to assess the medium-term outlook for Bitcoin's market.

Michael van de Poppe remarked, "The market capitalization of digital assets has amassed the necessary liquidity and is firmly above the crucial $1.54 trillion mark." According to the analyst, this is a strong bullish sign, and it is not out of the realm of possibility that the market's capitalization could return to $2 trillion in the foreseeable future.

It's worth noting that Bitcoin recently held above the critical $40,000 level, triggering a bullish impulse indicative of increased buying activity. The cryptocurrency market's capitalization has grown by 2.73% in the last 24 hours, reaching $1.59 trillion. Taking all factors into account, Michael van de Poppe emphasized that the capitalization of digital assets could reach $2 trillion by the end of this year, with the potential for further growth to $3 trillion if conditions remain favorable.

However, not all industry experts share this positive assessment of the market situation. For instance, analyst Alan Santana speculated that Bitcoin could soon drop to $23,000. In his view, the main digital coin is currently under pressure due to an unstable macroeconomic environment.

According to the latest statistical data, the United States has seen an increase in business activity and consumer prices, suggesting that inflation is steadily becoming more stable. Next week, the Federal Reserve will hold a meeting, and there is a significant likelihood that officials' rhetoric will be rather stringent. This also diminishes the prospects of monetary policy easing in March, as anticipated by many economists.