As a researcher with experience in the cryptocurrency market, I find the Bitfinex Alpha report intriguing. The prediction of a 1-2 month consolidation period for Bitcoin following the halving is an interesting perspective, especially considering the current macroeconomic environment and the preparedness of consumers and businesses.
Based on the assessment of experts at Bitfinex cryptocurrency exchange, Bitcoin’s (BTC) price may undergo a consolidation period lasting up to two months after the halving event.
In its most recent market analysis, the Bitfinex Alpha report indicates that Bitcoin may serve as the pricing guideline for the cryptocurrency sector throughout May and could act as a significant predictor of the overall cryptocurrency market capitalization trend.
Based on the findings of the report, the economy’s ability to withstand shocks is stronger than it has been in the past, making the probability of interest rate reductions in the near future relatively low.
In addition, the experts noted that regular investors and businesses have gained more knowledge and readiness regarding the economic conditions of the crypto market than in past instances.
“Consequently, we believe we could see a 1-2 month consolidation in Bitcoin prices, trading in a range with swings of $10,000 on either side.”
Any favorable influence on Bitcoin’s price resulting from the halving event, which decreased the production of new Bitcoins, is expected to materialize in the ensuing months.
As an analyst, I would rephrase that statement as follows: “I believe the economy will be showing improvement at this stage, having managed a soft landing and steered clear of a recession. This economic upturn is likely to provide additional momentum for crypto assets.”
As a crypto investor, I’ve noticed that many of my fellow traders have expressed comparable perspectives regarding Bitcoin’s recent price stabilization following its record-breaking all-time high reached nearly a month ago.
As a crypto investor following the insights of Michaël van de Poppe, founder of MNTrading, I’ve noticed a potential shift in the market. Bitcoin’s dominance over the altcoin sector may be waning as traders increasingly allocate their liquidity towards alternative cryptocurrencies. Similarly, Matthew Hyland, another experienced crypto trader, has voiced a similar perspective. Both experts suggest that Bitcoin’s market dominance is losing significant support.
As a financial analyst, I’ve taken a closer look at the recent developments in the cryptocurrency market as outlined in the Bitfinex Alpha report. Specifically, I’ve delved into the technical aspects of Bitcoin’s declining market dominance. Historically, I’ve observed that Bitcoin halvings have been followed by increased investor interest in altcoins. These digital assets often experience significant rallies and gain a larger share of the overall market as a result.
As a market analyst, I would rephrase it as follows: “I observe that Bitcoin‘s decreasing supply growth rate is considered a positive long-term trend by investors, increasing their risk appetite and driving them to explore potential higher returns in other cryptocurrencies.”
Over the past two weeks, Ether (ETH) has surpassed Bitcoin’s gains, marking the first time this has happened since February 2023. According to Bitfinex analysts, this represents a significant 7.5% increase in the value of ETH relative to Bitcoin – a notable achievement given that it signifies ETH’s most substantial weekly growth against Bitcoin so far this year.
The report underscores Ether’s significance as an early indicator of market trends among altcoins, with a long-term influence that predates the adoption of similar trends by other altcoins.
The primary on-chain analyst at Glassnode, known as Checkmate, weighed in on Bitcoin’s recent price stability. He noted that a systematic reduction in Bitcoin futures contracts has been unfolding since the cryptocurrency hit its record peak in mid-March.
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2024-05-02 13:09