Bitcoin may experience a period of price consolidation lasting up to two months following its recent halving, according to analysts at cryptocurrency exchange Bitfinex. The Bitfinex Alpha market report suggests that Bitcoin will continue to be the benchmark for the crypto market in May and a leading indicator for the entire cryptocurrency market cap. The report cites the resilience of the macroeconomic environment and low likelihood of rate cuts in the short term as contributing factors. The analysts also note that consumers and businesses are better informed about the underlying economy compared to previous market cycles in crypto. As a result, a 1-2 month consolidation in Bitcoin prices, with swings of $10,000 on either side, is expected.
The report also suggests that any positive impact on Bitcoin’s price following the halving will be seen in the coming months. It predicts that as the economy improves and avoids a recession, this will further boost crypto assets. Other cryptocurrency traders have expressed similar views, with some suggesting that Bitcoin’s dominance may have peaked as liquidity shifts to altcoins. The Bitfinex Alpha report delves into the technical details of Bitcoin’s declining market dominance and notes that halvings historically result in attention shifting towards altcoins, which rally and gain market share. This shift is seen as a long-term bullish development that increases investor appetite for risk and drives them to seek higher returns from alternative cryptocurrencies.
Ether, the second-largest cryptocurrency by market capitalization, has outperformed Bitcoin in recent weeks, marking its strongest gains against Bitcoin since the start of the year. The report highlights Ether’s role as a proxy for the altcoin market and suggests that it is a historical first mover before other altcoins catch up in terms of market trends. Analysts at Glassnode, a blockchain data firm, have commented on Bitcoin’s recent consolidation, noting a gradual de-leveraging across Bitcoin futures since its all-time highs in mid-March.
Analysts predict a period of price consolidation for Bitcoin following the halving, with swings of $10,000 on either side. The macroeconomic environment is expected to strengthen, avoiding a recession and providing further momentum for crypto assets. Ether has shown strong performance against Bitcoin and serves as a proxy for the altcoin market. Bitcoin’s recent consolidation has been accompanied by a de-leveraging in Bitcoin futures. These factors collectively indicate potential shifts and trends in the cryptocurrency market in the coming months.
I appreciate the technical details provided in the Bitfinex Alpha report. 📚 It helps us understand the declining market dominance of Bitcoin and the potential shift towards altcoins.
Ether’s strong gains against Bitcoin are definitely noteworthy! It’s fascinating to see the dynamics between different cryptocurrencies.
The proxy role of Ether in the altcoin market gives insight into upcoming trends. It’s fascinating how different cryptocurrencies influence each other.
Wow, this article provides some interesting insights into the future of Bitcoin! I’m excited to see how the market will develop in the coming months.
It’s great to have data from Glassnode to back up the analysis of Bitcoin’s recent consolidation. Their insights provide a deeper understanding of the market.
It’s great to see that Bitcoin will continue to be the benchmark for the crypto market! The resilience of the macroeconomic environment is definitely a positive sign.
Ether’s recent gains against Bitcoin mean nothing. It’s just a temporary blip.
A period of price consolidation for Bitcoin? That’s normal for the market! It will be interesting to watch how the macroeconomic environment and crypto assets evolve.
Swings of $10,000? That’s just insane! Can’t trust these so-called experts.
The proxy role of Ether in the altcoin market is an important indicator to consider. 🔄 It sets the tone for other cryptocurrencies to follow.
A consolidation period for Bitcoin? That’s intriguing! I’m curious to see how swings of $10,000 will affect its price.
It’s good to hear that consumers and businesses are more informed about the underlying economy in the crypto market. Knowledge is key!
Ether’s gains mean nothing in the grand scheme of things. Bitcoin is still king!
The report is just trying to downplay the potential impact of the halving. Talk about biased analysis! 😡