Bitcoin Post-Halving Price Consolidation Isn’t Over Yet: Bitfinex
Analysts at cryptocurrency exchange Bitfinex predict the price of Bitcoin could consolidate for up to two months post-halving.
The latest edition of the Bitfinex Alpha market report released on April 29 noted that Bitcoin could continue to be the price action benchmark for the crypto market in May and the leading indicator for the entire cryptocurrency market cap.
Bitfinex stated Bitcoin is undervalued. The Market Value to Realised Value (MVRM) ratio is currently at 2.21.
Binfinex noted this as a potential entry point for investors, especially as historical patterns show substantial returns when MVRV dips below its 90-day average.
“Current on-chain signals we are seeing have historically coincided with a bottom for BTC,” they noted.
Despite this, Bitcoin dominance is experiencing a decline, with Ethereum and other altcoins outperforming BTC.
“Typically, post-halving periods witness a shift in investor focus to altcoins, searching for potentially higher returns,” the report continued.
This shift in investment patterns stems from a federal economic report highlighting slower-than-anticipated growth in the US economy. As demonstrated by the real Gross Domestic Product (GDP) annual rate, which plummeted to 1.6 percent in the first quarter of 2024, down from 3.4% in the last quarter of 2023.
The slowdown in the US economy’s growth is largely due to microeconomic factors. Higher interest rates discourage investors from allocating funds to volatile assets such as Bitcoin, preferring more stable options.
The Fed’s key inflation gauge, the personal consumption expenditures (PCE) index, saw no change in March, holding steady at a 0.3 percent increase month-over-month.
On a year-on-year basis, PCE is at 2.7 percent, which
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