Falcon Financial Services has maintained its medium-to-long term for the cryptocurrency market, expecting the overall market cap to remain above the $180-200 billion level, the company said in a recent report.
The think tank also predicted the Bitcoin (BTC) to consolidate above $6,500 support (worst case: $6,300). “We expect BTC to perform positively in H1-20, at least until the halving event.”
Falcon also forecasted that altcoins to follow suit of the flagship cryptocurrency in the absence of specific news.
According to the report, the financial services provider has stated that one of the main assumptions for a bullish price development was the crypto adoption from institutional investors. However, it seems that this never materialized.
In May, the Bitcoin will experience another halving after undergoing two ones in 2012 and 2016. This means that the reward for mining a new block will be halved, so miners receive 50% fewer Bitcoins (from 12.5 to 6.25 per mined block) for verifying transactions.
“We expect the demand to remain strong ahead of this major event,” Falcon said.