A widely followed crypto analyst says investors shouldn’t expect an altco season before the Federal Reserve takes the next step.
In a new video update, crypto strategist Benjamin Cowen tells His 802,000 YouTube subscribers probably won’t arrive this season until the Fed eases monetary policy and cuts interest rates.
According to Cowen, altcoins only outperformed Bitcoin (BTC) in the last cycle after the Federal Reserve started cutting interest rates.
“There are a lot of altcoins that are actually falling, more are going down than up and that is why the advance/fall index is falling again and it fell here in 2019 too, right before the FED cut.
It dropped very, very quickly and then of course the Fed started intervening in July, so I would keep an eye on that because a lot of people keep calling for altseason and whatever, and for altcoins to sustainably beat Bitcoin, but the In the last cycle we only reached that phase after the interest rate cut by the FED.”
Cowen goes on to say that he expects altcoins to die out against the major crypto assets by market cap until the Fed changes course.
“My expectation is that Bitcoin’s dominance will reach around 60%. I think altcoins will continue to flow back to the king…
I wonder if you’ll see a very large increase in Bitcoin dominance in the coming months as Bitcoin just continues to absorb that liquidity from the altcoin market.”
BTC’s dominance level currently stands at 55.39%, while the total crypto market cap excluding BTC (TOTAL2) to sit at the time of writing $1.049 trillion.
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Generated image: Midjourney