Altcoins
Altcoins May See 40% Drop Against BTC Pairs Over Coming Months, Says Analyst
The broader cryptocurrency market fell into the grip of the bears, with Bitcoin ETFs seeing $162 million in outflows a day ahead of the market. FOMC meeting. Higher inflation could likely negate the chances of a Fed rate cut this year. Over the past 24 hours, Bitcoin’s price has fallen 5%, falling below $60,000, while altcoins are experiencing an even deeper correction.
Altcoins will see even deeper corrections
Crypto analyst Benjamin Cowen recently shared insights suggesting a potential correlation between altcoin-to-Bitcoin (ALT/BTC) pairs and impending rate cuts. Cowen drew parallels with the previous cycle, noting the capitulation of ALT/BTC pairs just before the rate cuts. He speculated that history could repeat itself, implying an additional 40% drop in ALT/BTC pairs over the coming months.
Despite short-term counter-trends, Cowen maintained its view, highlighting the ongoing struggles of altcoins amid plummeting social interest. He highlighted the lack of investor concern, comparable to that of 2019. During this period, social interest also declined before rate cuts, and ALT/BTC pairs bottomed when the Federal Reserve has adjusted its position.
This could be difficult for Bitcoin and Crypto
THE Bitcoin Price extended its losses, as it trades at $59,500 levels at press time. April turned out to be the worst performing month for Bitcoin after the FTX collapse in November 2022. Market analysts point to a new downside for BTC price at $52,000, if it goes down in below $58,000, its 100-day EMA.
Market analyst Patric H. predicts a tough emotional ride for Bitcoin and altcoin investors in May. It suggests that over the next 2-6 weeks there could be a final period of stabilization before a possible breakout occurs. He added that the feeling is too euphoric, as shown by the fear and greed index, on the side of the “greedy”.
Patrick added: “The market is losing momentum as we observe a exits from Bitcoin ETF. Coupled with the disappointing debut of the HK ETF, which saw only $11 million in trading volume (instead of the expected $300 million), investors’ expectations are not being met.
With anticipation growing for the Federal Reserve’s interest rate announcement scheduled for Wednesday, anxiety has enveloped the market, leading to a rise in the dollar index as investors seek safety. These developments have played a role in the slowdown seen in the crypto market. As a result, the market appears to be in a state of uncertainty, lacking clear direction until the interest rate announcement.