Potential for Significant Bitcoin Decline as Investors Cash in Gains, According to Bitfinex

Bitcoin recently reached a fresh all-time high (ATH), marking its seventh week of consecutive gains. However, Bitfinex's Alpha report indicates that this streak may soon end as traders start to cash in their profits, particularly in the face of an uncertain macroeconomic climate intensified by US tariff tensions.

After reaching a new ATH, Bitcoin saw a minor correction, falling below its previous high of $109,590, largely due to renewed global trade war fears sparked by President Donald Trump's proposed 50% tariffs on EU imports. Bitfinex suggests that two types of sellers will emerge: those who have made a profit from the Bitcoin dip and those who have finally reached breakeven.

The substantial increase in profit-taking, particularly from short-term holders, suggests a period of market consolidation may be imminent.