You Won’t Believe What Analysts Are Predicting for Altcoins!
Following the recent Bitcoin crash, altcoins have taken a significant hit in the crypto market. This has left many investors facing losses as these alternative coins are typically more volatile than Bitcoin. As a result, their price fluctuations can be more extreme. While the expectation is that altcoins will eventually rebound, one prominent analyst has a different opinion on the matter.
Altcoins on the Verge of a Major Correction
In a recent analysis shared on X (formerly Twitter), seasoned crypto analyst Benjamin Cowen made a startling prediction regarding the future of altcoins. According to Cowen, the worst may not be over for the altcoin market, as further downturns could be on the horizon.
- Altcoins vs. Bitcoin Pairs:
- Cowen’s analysis focused on the performance of altcoins against Bitcoin pairs, revealing a weakness in these pairings.
- Expected Rate Cuts:
- The anticipated rate cuts combined with historical data indicate a looming decline for altcoins moving forward.
- 2019 Comparison:
- Cowen referenced the altcoin reactions to rate cuts in 2019, highlighting significant losses of up to 40% during that time.
- Potential 40% Decline:
- Based on these trends, Cowen projects a potential 40% drop in ALT/BTC pairs in the coming months.
Cowen maintains that this correction is inevitable, regardless of short-term market movements. Even if there is a temporary recovery, Cowen asserts that the underlying thesis remains intact and unaltered by such fluctuations.
Bitcoin’s Downturn Reverberates Through Altcoin Market
While Bitcoin’s recent crash has been widely felt across the crypto market, altcoins have borne the brunt of the impact. Ethereum managed to weather the storm with minimal losses, while other altcoins like Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI) suffered average declines of 9% in the past 24 hours.
- Memetic Coins Fall:
- Meme coins such as Dogecoin, Pepe, Bonk, and Shiba Inu all recorded notable losses during this volatile period.
- Market Winners:
- Despite the overall downturn, some altcoins managed to buck the trend and register gains, with Optimism (OP), Cosmos (ATOM), and Starknet (STRK) emerging as top performers for the day.
This market turbulence has seen the altcoin market cap dip below $1 trillion, with the potential for a 40% further decline if Cowen’s predictions come to fruition.
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