Widely followed crypto analyst Benjamin Cowen says many altcoins are poised for another collapse this year without a recovery.
In a new video update, Cowen tells its 787,000 YouTube subscribers know an “altcoin reckoning” is in the offing – one from which many crypto assets will never recover.
“While I agree that the altcoin market as a whole will eventually rise again, there is a good chance that many of today’s altcoins will not be part of it. Some of them probably will be, and some of them will probably reach new highs eventually.
Unfortunately, many of them are unlikely to see new highs and so you could have some sort of scenario where the altcoin market simply spends some time. [$323.5 billion] range, maybe it will eventually come back to [$290 billion range]and then just capitulates and [falls even further] into the depression phase before we come out of it in 2024.”
According to the strategist, altcoins will experience a ‘renaissance’ after their depression phase, as the Federal Reserve focuses on its monetary policy. Cowen expects the Fed to change course sometime next year.
“I think [the depression phase] is coming, and then I think what comes next is the altcoin renaissance, but that most likely won’t come until the Fed turns around. I don’t think the Fed will make a U-turn this year. There’s a chance they’ll turn around this year, but I just don’t think they will.
If they turn around this year, it doesn’t mean the altcoin market will immediately rise again. It may take a while because if they turn around this year, they would only cut a very, very small amount.”
I
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney