Altcoin
Here’s How Bitcoin and Altcoins Will Perform “Until the Fed Cuts Rates,” According to a Veteran Crypto Analyst
Cryptocurrency analyst Benjamin Cowen you see That of Bitcoin Despite this, BTC/USD dominance is further increasing recent market fluctuations.
What happened: In a detailed thread, Cowen addressed recent speculation that Bitcoin dominance would peak following a steeper decline in BTC versus altcoins in recent 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’s dominance stands at 53.4%.
Cowen points that Altcoin/BTC pairs are oscillators, currently well above all-time lows. He notes: “If you zoom in, you can see that ALT/BTC pairs have risen from 0.36 to 0.40 over the past week. Keep in mind that 0.36 was the lowest level ALT/BTC pairs have seen in recent years, so all the previous seasons of the alt calls were definitely premature.”
The analyst draws parallels to 2019, when Altcoin/BTC pairs experienced a brief rebound before falling further. He suggests that a similar pattern could play out in the current market cycle.
Read also: Congressman Matt Gaetz introduces a bill to allow federal taxes to be paid in Bitcoin
Because matter: Cowen’s analysis challenges the prevailing narrative among some cryptocurrency enthusiasts who believe altcoins are poised for success. Furthermore, Cowen highlights a potential cyclical pattern, pointing out that historically there have been significant rallies in Altcoin/BTC pairs in the years following the halving. “That would be 2025 if it happened again, not 2024,” she explains.
What’s next: The trader continues to believe that Altcoin/BTC pairs will continue to decline until the Federal Reserve cuts rates or resumes quantitative easing. He cautions against prematurely anticipating this shift, stating: “It’s tempting to get ahead of the process, but this cycle has proven time and time again that BTC dominance is going higher than most people expect. you think it is.”
This analysis suggests that investors and traders in the cryptocurrency space may need to reevaluate their strategies and expectations for altcoin performance in the near term.
The influence of Bitcoin as an institutional asset class it is expected to be explored in depth at Benzinga’s next event The future of digital assets event on November 19th.
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This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.