Bitcoin may go through a period of price consolidation lasting up to two months following the halving, according to analysts at cryptocurrency exchange Bitfinex. The latest edition of the Bitfinex Alpha market report suggests that Bitcoin could continue to set the price action benchmark for the crypto market in May and act as the leading indicator for the entire cryptocurrency market cap. The report also notes that the macroeconomic environment is more resilient than in previous years, with a low likelihood of rate cuts in the short term. The analysts believe that consumers and businesses are better prepared and informed about the state of the underlying economy compared to previous crypto market cycles. They anticipate that any positive impact on Bitcoin’s price resulting from the halving will be seen in the coming months, as the economy is expected to be performing better and avoiding a recession. Other cryptocurrency traders share similar views, suggesting that Bitcoin’s dominance may have peaked and that liquidity is shifting to altcoins. The report also explores Bitcoin’s dropping market dominance and highlights Ether’s recent market performance in outperforming Bitcoin for two consecutive weeks. It concludes that Ether has a long-term role as a proxy for the altcoin market.
Bitfinex estimates Bitcoin's price consolidation following halving could endure for 2 months