Bitfinex predicts Bitcoin’s price consolidation following halving may extend for 2 months

Bitcoin may undergo a period of price consolidation lasting up to two months following the halving, according to analysts at cryptocurrency exchange Bitfinex. In its latest market report, the exchange stated that Bitcoin could continue to be the benchmark for the crypto market in May, as well as the leading indicator for the overall cryptocurrency market cap. The report also noted that the macroeconomic environment is more resilient than in previous years, with a low likelihood of rate cuts in the short term. Additionally, consumers and businesses are said to be better informed about the state of the underlying economy compared to previous crypto market cycles. The report predicts that any positive impact on Bitcoin’s price following the halving will be seen in later months, when the economy is expected to be performing better and avoiding a recession. Various cryptocurrency traders have also suggested that Bitcoin’s dominance may have peaked, as liquidity begins to shift towards altcoins. The Bitfinex report mentioned that Bitcoin halvings historically result in attention shifting towards altcoins, which rally and gain market share. Ether’s recent market performance has outperformed Bitcoin in gains for two consecutive weeks, marking its strongest weekly gain against Bitcoin since the start of the year. The report also highlighted Ether’s role as a proxy for the altcoin market, making it a historical first mover before other altcoins catch up in terms of market trends. On-chain analyst Checkmate from Glassnode noted that there has been a gradual “de-leveraging” across Bitcoin futures since the cryptocurrency’s all-time highs in mid-March.