Benjamin Cowen Warns of Impending Capitulation in DeFi and Altcoin Markets
Crypto analyst Benjamin Cowen is cautioning that the decentralized finance (DeFi) and altcoin markets may soon experience a significant capitulation event. In an interview, Cowen predicts that Bitcoin will retrace its gains from the first half of the year, dragging down DeFi and altcoins in the process.
Key Points:
– Bitcoin’s historical price patterns in pre-halving years show that it typically increases for half the year and declines for the other half. This trend has been observed in 2011, 2015, and 2019. In 2023, the pattern appears to be repeating with five out of the first six months being green.
– The altcoin market has been struggling throughout the year, with Bitcoin’s dominance increasing. If Bitcoin retraces any of its recent gains, it could drain liquidity from the alt markets and lead to further struggles.
– The most brutal part of the cycle is when Bitcoin’s dominance rises while its price declines. Many people have yet to experience this phase, but Cowen believes it is on the horizon.
Hot Take: DeFi and Altcoin Markets Brace for a Potential “Windfall Event”
According to Benjamin Cowen, the DeFi and altcoin markets could be on the verge of a “windfall event” that could have a significant impact. With Bitcoin expected to retrace its gains and potentially decrease in value, the alt markets may face further struggles and a drain in liquidity. This warning serves as a reminder of the volatility and risks associated with the crypto space, urging caution and preparedness among crypto enthusiasts.
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