Popular Analyst Predicts Altcoin Rising Won’t Occur Before February 2025
Earlier this week, altcoins made a healthy recovery as Bitcoin price reached $58,000 and BTC market dominance fell 2%. Popular crypto analyst Benjamin Cowen said it is too early to assume that the altcoin rally will continue and there is not enough liquidity to support the momentum.
Bitcoin Price Dominance Will Grow Further
Analyst Benjamin Cowen noted that altcoins will bounce back higher as they fall harder than Bitcoin during the correction. But he calls this a false equivalence and adds that Bitcoin price dominance has not yet peaked.
Cowen noted that historically, ALT/BTC pairs have acted as oscillators and despite recent rallies, they still remain above long-term bottoms.
Courtesy: Benjamin Cowen
He also added that last week, ALT/BTC pairs returned from 0.36 to 0.40. Cowen also emphasized that the 0.36 level marks the lowest point in the last few years for ALT/BTC pairs. Therefore, he suggested that the previous prediction of an altcoin season may have been premature.
Also Read: Bitcoin Leads the Market Rise, Will Altcoins Follow?
Altcoin Rally Won’t Come Before February 2025
Cowen also noted that in 2019, ALT/BTC pairs experienced a crash just before the Federal Reserve cut interest rates, briefly rising from 0.25 to 0.42. This led many to think that BTC dominance had reached its peak, but then ALT/BTC pairs dropped to 0.25.
Despite ongoing predictions of a decline in Bitcoin dominance over the years, Cowen notes that it has consistently remained above the bull market support bank, showing strong resistance since the beginning of 2023.
He also pointed out that historically significant upward movements occurred in ALT/BTC pairs in the years after the halving. Therefore, the altcoin rally has a higher chance of starting in 2025 compared to 2024. Additionally, as parofix reported, the Fed’s rate cuts are unlikely to happen in 2024. Therefore, liquidity is likely to remain tight until then.
Cowen concluded by stating that ALT/BTC pairs will continue to bleed until the Fed announces interest rate cuts and resumes quantitative easing (QE). He said that while there was a temptation to anticipate these actions, historical cycles consistently show that BTC dominance will exceed popular expectations.
Also Read: Most Searched Altcoins on Google; Worth buying?
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Bhushan is a FinTech enthusiast and has a good grasp of financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is a constant learner and motivates himself by sharing the knowledge he acquires. In his spare time, he reads thrillers and sometimes explores his culinary skills.
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