Don’t Anticipate Altseason Until This Occurs, According to Crypto Analyst Benjamin Cowen
A widely followed crypto analyst, Benjamin Cowen, suggests that altcoin season is not likely to occur until the Federal Reserve takes its next action. Cowen explains in a recent video update that altseason is expected to happen only once the Fed eases monetary policy and reduces interest rates.
Based on Cowen’s analysis, in the previous cycle, altcoins outperformed Bitcoin only after the Federal Reserve started cutting rates. He points out that currently, many altcoins are experiencing a decline, indicating the drop in the advance/decline index. This is similar to what happened in 2019 before the Fed’s rate cut. Therefore, Cowen advises keeping an eye on the Fed’s actions, as altseason might not materialize until the rates are cut.
Moreover, Cowen expects altcoins to continue losing value against Bitcoin until there is a shift in the Fed’s policies. He predicts that Bitcoin dominance will increase to around 60%, indicating that altcoins will bleed back to the leading cryptocurrency.
Currently, Bitcoin’s dominance level stands at 55.39%, while the total crypto market cap excluding Bitcoin is valued at $1.049 trillion.
It is important for investors to consider these factors and closely monitor the Federal Reserve’s decisions before expecting altseason to occur.
Source: Benjamin Cowen/X