As a seasoned crypto investor with a few years of experience under my belt, I find Benjamin Cowen’s analysis thought-provoking and well-reasoned. His assessment of the current state of altcoins and Bitcoin dominance resonates with my own observations.
Recently, the prices of alternative cryptocurrencies rebounded robustly when Bitcoin dipped to $58,000. Concurrently, Bitcoin’s market dominance decreased by 2%. Noted crypto analyst Benjamin Cowen cautioned against jumping to conclusions about an ongoing altcoin rally, as there isn’t enough liquidity present yet to sustain the upward trend.
Bitcoin Price Dominance to Grow Further
Expert response:
As a researcher studying historical price data for ALT and BTC pairs, I’ve observed that these assets have functioned as oscillators in the past. Although we’ve seen some significant rallies recently, the prices of ALT and BTC remain above their long-term lows based on my analysis.
Cowen pointed out that within the last week, ALT/BTC pairs have rebounded from a low of 0.36 to 0.40. He emphasized that this level was the lowest point for these pairs in recent years. As a result, his earlier call for an altcoin season might have been made too soon.
Altcoin Rally Won’t Come Before February 2025
As a crypto investor looking back at the market trends in 2019, I recall Cowen’s observation about the ALT/BTC pairs undergoing a breakdown right before the Federal Reserve rate cuts. The pairs surged briefly from 0.25 to 0.42, fueling widespread speculation that Bitcoin’s dominance had peaked. However, it didn’t take long for the ALT/BTC pairs to decline back to their previous level at 0.25.
In spite of continuous forecasts predicting a decrease in Bitcoin’s market dominance since the start of the year, Cowen observes that it has maintained strength and remained above its key support level during the bull market, demonstrating robust resilience.
As an analyst, I’ve observed that past bull markets for altcoins relative to Bitcoin have often emerged during the years following a Bitcoin halving event. Consequently, it seems more probable that the next altcoin rally will commence around 2025 rather than in 2024. Additionally, according to CoinGape’s report, it is uncertain if the Federal Reserve will implement rate cuts in 2024. As a result, market liquidity may continue to be restricted until then.
Do you see the massive green yearly candles for #ALT / #BTC pairs in prior cycles?
In the years following each halving event, both occurrences took place. If this pattern continues, we can expect these events to occur around 2025, not 2024.
— Benjamin Cowen (@intocryptoverse) June 26, 2024
Cowen expressed his belief that the ALT/BTC pairs are expected to experience further losses prior to the Federal Reserve’s announcement of interest rate reductions and the resumption of quantitative easing (QE). However, it is worth noting that historical trends suggest that Bitcoin’s dominance may surpass current expectations.
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2024-06-26 17:34