Bitfinex Predicts Bitcoin's Two-Month Consolidation; Highlights Ether's Market Dominance
Summary:
Cryptocurrency exchange Bitfinex's analysts expect Bitcoin to enter a two-month consolidation period following the halving. Predicted rate cuts remain unlikely, and consumer and business awareness around the underlying economy has improved from previous cycles. The reduction in new BTC supply after the halving is expected to influence Bitcoin prices positively in due course. The report also underscores Ether's impressive recent performance, outpacing Bitcoin gains for two straight weeks.
Crypto exchange Bitfinex's analysts predict a potential two-month consolidation for Bitcoin's (BTC) price in the wake of the halving, according to their recent market report, Bitfinex Alpha. They point out that Bitcoin continues to set the pace for cryptocurrency market price movement, and acts as the prime indicator for the entire cryptocurrency market cap. The report highlights a macroeconomic environment that's more robust than in the past, and a low likelihood of rate deductions in the near future. It emphasizes that regular consumers and businesses are now more knowledgeable about the state of the basic economy, a contrast to previous crypto market cycles. Analysts forecast a stabilization period for Bitcoin, where it may fluctuate within a $10,000 range.
The report implies that the effects of the halving on Bitcoin’s price, which has curtailed the inflow of new BTC into the market, will only manifest in the subsequent months. The analysts project an elevated economy in that period, bypassing a recession and creating additional momentum for crypto assets. Traders like Michaël van de Poppe, MNTrading's founder, mirror Bitfinex's argument for Bitcoin's ongoing consolidation since its peak last month. He hints at a possible peak for Bitcoin’s dominance as traders begin to redistribute funds to altcoins, an opinion agreeing with crypto trader Matthew Hyland.
Bitfinex Alpha explores the technical aspects of a falling Bitcoin market dominance in its report. It points out that after Bitcoin halvings, investor focus commonly pivots to altcoins, which typically rally and gain market share. The report suggests that the reduced supply growth rate of Bitcoin is viewed as a positive long-term factor, encouraging investors to gamble on potentially greater returns from alternative cryptocurrencies.
The report also draws attention to Ether's (ETH) strong recent market performance, outstripping Bitcoin in gains for two successive weeks, a pattern last noted in February 2023. They also reveal a 7.5% surge in the ETH/BTC metric as Ether's strongest weekly rally against Bitcoin since the start of the year. The analysts also underline Ether's legacy role as a surrogate for the altcoin market, typically being the trailblazer before other altcoins follow suit in market trends. Checkmate, Glassnode's lead on-chain analyst, has also shared insights into Bitcoin’s ongoing consolidation. He outlines the steady process of "de-leveraging" across Bitcoin futures since Bitcoin achieved its most recent pinnacle in mid-March.
Published At
5/2/2024 1:00:55 PM
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