Crypto Market Trends: Analyst Predicts Altcoin Downturn Against Bitcoin

2024-08-05

Crypto analyst Benjamin Cowen warns of a potential downturn for altcoins against Bitcoin (BTC), drawing parallels to the 2019 market cycle. Cowen’s analysis suggests that the current market is closely following the patterns seen during that period, which could spell trouble for altcoin holders. As Bitcoin’s dominance is expected to rise, the impact on altcoins could be significant.

Key Takeaways

Altcoin Market Concerns: Analysts predict significant declines for altcoins relative to Bitcoin, following historical market patterns.
Rising Bitcoin Influence: Bitcoin is expected to dominate a larger share of the crypto market, potentially impacting altcoin values.
Market Trends: Current crypto market trends resemble those from previous cycles, suggesting a possible repeat of past downturns for altcoins.

Crypto Analyst Predicts Altcoin Market Downturn Against Bitcoin

Crypto analyst Benjamin Cowen, suggests that altcoins are poised for a significant decline against Bitcoin (BTC). He believes the current crypto market is mirroring the patterns observed during the 2019 cycle, indicating a potential market meltdown for altcoin holders.

In April, Cowen analyzed the total market cap of altcoins (TOTAL3) relative to Bitcoin and observed that the chart closely resembles the one from 2019. This historical comparison led him to predict a substantial correction for Bitcoin, following a collapse in ALT/BTC pairs. He anticipates a similar scenario unfolding now, with altcoins potentially facing a downturn against the U.S. dollar.

Source: Benjamin Cowen on X

Cowen’s analysis highlights that the ALT/BTC chart has recently breached key support levels. He suggests that we might witness a repeat of the 2019 cycle, where ALT/BTC pairs deteriorated a month before the first rate cut. He foresees a similar pattern emerging in the current market conditions.

Source: Benjamin Cowen on X

According to CME’s FedWatch Tool, all traders and investors expect the Federal Reserve to lower interest rates next month. Cowen also projects that Bitcoin Dominance (BTC.D), which measures Bitcoin’s share of the total crypto market cap, will rise to 60% before altcoins experience any relief. He notes that with recessionary indicators present, the Fed is likely to cut rates soon, potentially boosting BTC dominance to around 60% between September and December 2024.

Bitcoin (BTC) Price

Currently, Bitcoin (BTC) is trading at $50,414 with $63,075,814,970 24-hour trading volume and $991,283,813,042 market capitalization.

The recent trend in Bitcoin’s price shows a notable decline, with the price dropping to around $50K. This sharp decrease highlights the inherent volatility of the cryptocurrency market. Such rapid price changes can be influenced by various factors, including market sentiment, regulatory news, or broader economic trends.

Read more: How to Buy: Bitcoin (BTC)

Conclusion

Benjamin Cowen’s latest analysis suggests that altcoins are on the verge of a downturn against Bitcoin, echoing the 2019 market cycle. With Bitcoin Dominance anticipated to rise to 60% and the Federal Reserve expected to lower interest rates, the impact on altcoins could be substantial. As Bitcoin’s price experiences volatility, altcoin holders should prepare for possible market shifts in the coming months.

FAQ

What does Bitcoin Dominance mean?

Bitcoin Dominance (BTC.D) measures Bitcoin’s share of the total cryptocurrency market cap. A higher dominance indicates Bitcoin’s greater influence compared to other cryptocurrencies.

Why are altcoins expected to decline against Bitcoin?

Altcoins are expected to decline against Bitcoin due to historical patterns mirroring the 2019 cycle and Bitcoin’s increasing dominance in the market.