A closely watched crypto strategist thinks altcoins are about to witness a market meltdown against Bitcoin (BTC).
Analyst Benjamin Cowen tells According to his 839,200 followers on social media platform
In April this year, Cowen looked at the total market cap of altcoins (TOTAL3) versus Bitcoin said the graph is a copy of the 2019 cycle.
Back then, Cowen predicted that Bitcoin would see a bigger correction once the ALT/BTC pairs collapse, creating a scenario where altcoins capitulate against the US dollar.
With the ALT/BTC chart support, the analyst has say “It’s time” for the market to see an encore of the 2019 cycle.
‘Finally we have to see it ALT/BTC couples fall apart quickly. The last cycle broke down a month before the first rate cut, and something similar could happen here too.”
CME’s FedWatch tool indicates that 100% of traders and investors expect the Fed to cut rates next month.
Cows too predicts that Bitcoin Dominance (BTC.D), which tracks how much of the total crypto market cap belongs to BTC, will soar to 60% before altcoins get any relief.
“With some indicators pointing to recession signals, this means the Fed will soon start cutting rates to try to minimize the damage and hope for a soft landing.
This means that BTC’s dominance will reach its peak soon (probably sometime between September and December 2024).
But first a dominance of 60%.”
At the time of writing, BTC.D is hovering at 56.73%, indicating that altcoins will have to lose much more value against Bitcoin if Cowen’s 2019 comparison holds.
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Featured image: Shutterstock/Warm_Tail