Bitfinex analysts predict that Bitcoin’s price could consolidate for up to two months after the halving event. In their latest market report, Bitfinex Alpha highlighted that Bitcoin remains undervalued, with the Market Value to Realised Value (MVRM) ratio currently at 2.21. This presents a potential entry point for investors, as historical patterns suggest significant returns when MVRV dips below its 90-day average. However, Bitcoin dominance is declining as investors shift their focus to altcoins, searching for higher returns. This shift is influenced by a federal economic report that revealed slower-than-expected growth in the US economy. The report attributes the slowdown to macroeconomic factors, such as higher interest rates deterring investors from volatile assets like Bitcoin. The combination of slowing growth and increasing inflation has sparked fears of stagflation. Despite these challenges, Bitfinex believes that the macroeconomic environment is more resilient than in previous years. The analysts anticipate a consolidation period of 1-2 months for Bitcoin, with prices trading in a range and swings of $10,000 on either side. This shift towards altcoins is further supported by the drying up of Bitcoin ETF flows. While Bitcoin ETFs gained popularity after receiving SEC approval in January, inflows have slowed down since early March. The recently launched Hong Kong Bitcoin Spot ETFs saw underwhelming inflows on their first day, leading to doubts about the current state of the market and how long Bitcoin can remain oversold.
