Binance analysts predicted the consolidation of bitcoin and the positive impact of Ethereum 2.0

Analysts of the Binance cryptocurrency exchange presented a trading report for October, which assessed trends in the market of bitcoin and other cryptocurrencies.

"Large-cap cryptocurrencies such as ETH, XRP, BCH, LTC and LINK showed moderate gains in October, but failed to rise to new highs as trading activity shifted to the bitcoin market. For many months, altcoins have been a key driver of income for cryptocurrency traders, analysts say. – Thus, it is not surprising that altcoins seem to be losing steam and are out of tune with the bitcoin rally. Since the correction in early September, most DeFi tokens have shown a total reversal, losing 70-90% of the increase."

Binance analysts believe that after a sharp rise to $16,000, new volatile movements from bitcoin should not be expected in the near future. To illustrate the likely development of further events, they suggest Recalling the consolidation between $10,000 and $12,000.

"Historically, bitcoin has moved to consolidation or a short-term correction after a strong upward movement," they add.

As a possible catalyst for the rise of the altcoin market, the authors point to the upcoming launch of Ethereum 2.0: "it is Expected that the update will have a positive impact on ETH, as it will significantly increase the compatibility, scalability and security of the network. In addition, the update will change The Ethereum consensus mechanism to Proof-of-Stake, which will encourage investors to fix the ether to get rewards for staking. As a result, the supply of ETH will decrease, while demand will continue to grow, as large investors will look for stable returns. These factors can lift ETH after the recent decline and potentially cause a rise in sentiment towards the altcoin sector."