Altcoins
Here’s How Bitcoin and Altcoins Will Perform “Until the Fed Cuts Rates,” According to a Veteran Crypto Analyst
Crypto analyst Benjamin Cowen sees Bitcoin BTC/USD dominance continues to grow despite recent market fluctuations.
What happened: In a detailed thread, Cowen addressed recent speculation that Bitcoin’s dominance has peaked after BTC saw a sharper decline against altcoins over the past few days.
He maintains his stance that Bitcoin dominance will continue to increase, based on historical trends and current market conditions. Currently, Bitcoin dominance stands at 53.4%.
Cowen points He points out that Altcoin/BTC pairs are oscillators, currently sitting well above their all-time lows. He notes: “If you zoom in, you can see that ALT/BTC pairs have moved from 0.36 to 0.40 over the past week. Note that 0.36 was the lowest level ALT/BTC pairs have seen in years, so any previous calls for alt season were definitely premature.”
The analyst draws parallels with 2019, when Altcoin/BTC pairs briefly rebounded before eventually falling further. He suggests that a similar pattern could play out in the current market cycle.
Read also: Rep. Matt Gaetz Introduces Bill to Allow Federal Taxes to Be Paid in Bitcoin
Why is this important: Cowen’s analysis challenges the dominant narrative among some crypto enthusiasts who believe altcoins are poised to break through. Additionally, Cowen highlights a potential cyclical trend, noting that significant rallies in Altcoin/BTC pairs have historically occurred in the years following the halving. “It would correspond to 2025 if it happened again, not 2024,” he explains.
And after: The trader maintains his view that the Altcoin/BTC pair will continue to decline until the Federal Reserve cuts rates or resumes quantitative easing. He cautions against prematurely anticipating this change, stating, “It’s tempting to get ahead of the curve, but this cycle has shown time and time again that BTC dominance is higher than most people realize.”
This analysis suggests that investors and traders in the crypto space may need to reevaluate their strategies and expectations for altcoin performance in the near term.
The influence of Bitcoin as an Institutional Asset Class should be explored in depth during Benzinga’s next project The Future of Digital Assets event on November 19.
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This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.