Altcoins
Here’s How Bitcoin and Altcoins Will Perform ‘Until the Fed Cuts Rates,’ According to Veteran Crypto Analyst
Crypto analyst Benjamin Cowen see Bitcoin BTC/USD dominance continues to grow despite recent market fluctuations.
What happened: In a detailed thread, Cowen addressed the recent speculation that Bitcoin’s dominance may have peaked after BTC saw a steeper decline against altcoins over the past few days.
He maintains his position that Bitcoin’s dominance will continue to increase, basing his argument on historical patterns and current market conditions. Currently, Bitcoin dominance stands at 53.4%.
Cowen points It appears that Altcoin/BTC pairs are oscillators, currently sitting well above their all-time lows. He notes: “If you zoom in, you can see that ALT/BTC pairs have gone from 0.36 to 0.40 over the past week. Note that 0.36 was the lowest level ALT/BTC pairs have seen in years, so all previous alt season calls were definitely premature.
The analyst draws parallels to 2019, when Altcoin/BTC pairs briefly rebounded before ultimately declining further. He suggests that a similar trend could occur in the current market cycle.
Read also: Congressman Matt Gaetz introduces bill to allow federal taxes to be paid in Bitcoin
Why is this important: Cowen’s analysis challenges the dominant narrative among some crypto enthusiasts who believe altcoins are poised to break through. Additionally, Cowen highlights a potential cyclical trend, noting that significant rallies in Altcoin/BTC pairs have historically occurred in the years following the halving. “It would correspond to 2025 if it happened again, not 2024,” he explains.
And after: The trader maintains his view that Altcoin/BTC pairs will continue to decline until the Federal Reserve cuts rates or resumes quantitative easing. He cautions against prematurely anticipating this change, saying: “It’s tempting to get ahead of the curve in the process, but this cycle has shown time and time again that BTC’s dominance is higher than most people think . »
This analysis suggests that investors and traders in the cryptocurrency sector may need to re-evaluate their strategies and expectations for altcoin performance in the near term.
The influence of Bitcoin as an institutional asset class should be explored in depth in the next The future of digital assets event on November 19.
Read next: This Bitcoin whale made $30 million with just 2 transactions
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.