Crypto Expert Benjamin Cowen Warns of Impending Altcoin Collapse Against Bitcoin
Renowned analyst Benjamin Cowen recently issued a cautionary note, predicting a market meltdown for altcoins in relation to Bitcoin (BTC). Cowen, who has a significant following on the social media platform X, believes that altcoin holders are on the verge of facing challenges, as he draws parallels between the current crypto market and the 2019 cycle.
Earlier this year in April, Cowen examined the total market capitalization of altcoins (TOTAL3) in comparison to Bitcoin, observing a striking resemblance to the chart pattern seen in the 2019 cycle. Based on this pattern, Cowen predicted a substantial correction for Bitcoin once ALT/BTC pairs started to collapse, resulting in altcoins capitulating against the US dollar.
Now, with the ALT/BTC chart breaking support, Cowen believes it is “time” for a repeat of the 2019 cycle. He highlights that in the previous cycle, ALT/BTC pairs broke down roughly a month before the first interest rate cut, suggesting a similar scenario could unfold this time around. CME’s FedWatch Tool also indicates that traders and investors anticipate an interest rate cut next month.
In addition, Cowen forecasts that Bitcoin Dominance (BTC.D), which measures the proportion of the total crypto market cap attributed to BTC, will climb to 60% before altcoins witness any relief. With certain indicators signaling a potential recession, Cowen argues that the Fed will likely implement rate cuts to mitigate damage and aim for a smooth economic transition. Consequently, this will result in BTC dominance soaring, ultimately reaching 60% sometime between September and December 2024.
As of now, BTC.D stands at 56.73%, implying that altcoins have considerable ground to lose against Bitcoin if Cowen’s comparison to the 2019 cycle holds true. Traders and investors in the crypto space will be carefully monitoring these developments as the market dynamics continue to evolve.