Altcoins
Altcoins Struggling as Senior Analyst Predicts 40% Price Drop
Altcoins suffered more in the crypto market following the fall in Bitcoin prices, leaving many investors in losses. This is nothing out of the ordinary as these altcoins are known to have higher volatility than Bitcoin, so their price fluctuations can be more pronounced. Given the recent decline, altcoins are expected to recover. However, one analyst disagrees with this assessment.
Altcoins heading for a 40% crash
In an analysis job on X (formerly Twitter), veteran crypto analyst Benjamin Cowen shocked the crypto community with his expectations for altcoins. According to the analysis, the worst is far from over for the altcoin market, as more crashes are still to come.
Cowen explained that this was analyzed using pairs of altcoins and Bitcoin, and it appears that each looks weak compared to the supreme cryptocurrency. This is due to expected rate cuts, and historical performance suggests a cut will follow.
The crypto analyst highlighted the 2019 rate cuts and how altcoins reacted to this development at the time. Following the rate cuts, altcoins plunged against Bitcoin, with major players recording losses of up to 40% during this period. “Maybe this time is no different?” This would mean that ALT/BTC pairs would fall another 40% over the next few months,” Cowen said.
Cowen expects this to happen regardless of what happens in the market in the meantime. He explains that even if the market recovers in the short term, this does not invalidate the thesis. “Short-term countertrends do not invalidate this view,” he said.
If this repeats, it could make an already difficult market trend even bloodier. THE altcoin market capitalization has already fallen below $1 trillion at the time of writing, but a 40% drop from there could take it back to $600 billion.
Bitcoin Crash Drives Crypto Market
Even though the Bitcoin crash was brutal, the impact on altcoins was much more pronounced. Ethereum has held up well with a decline of less than 4% during this period, but others such as Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI) are down an average of 9%. during the last period. 24 hours.
Meme Coins haven’t been left out of the bloodbath either, with the market leader Dogecoin down 6% to $0.126 and Pepe (PEPE) freefalling 7.74% to $0.0000063. Bonk (BONK) posted a 5% decline to wipe out some of its gains from last week, and Shiba Inu fell 4.18%.
But amidst all this, there have been a few winners in the market, with Optimism (OP) recording gains of 12%. Cosmos (ATOM) followed with a 9.8% increase, and Starknet (STRK) rose 9%, making them the day’s top gainers, according to data from Coinmarketcap.
Altcoin market cap at $952 billion | Source: Altcoin total market cap from Tradingview.com
Featured image from Analytics Insight, chart from Tradingview.com