Crypto Strategist Benjamin Cowen: Stock Market Struggles Could Impact Altcoin Markets
Crypto strategist Benjamin Cowen suggests that the strength of the stock market could have a significant impact on the short-term future of all cryptocurrencies except Bitcoin. Cowen explains that a “risk-off” stance in stocks, where investors either stay on the sidelines or withdraw their capital, could negatively affect altcoins. If the S&P 500 remains risk-off, it could cause Bitcoin to drop below the 20-week SMA and lead to the capitulation of the altcoin market. Cowen also notes that the altcoin market’s overall performance is not promising in a risk-on environment. He believes that altcoin accumulation should not begin until Bitcoin dominance reaches 60%, which it has not yet achieved.
When Will Altcoins Turn Bullish?
Cowen argues that altcoin accumulation should not begin until Bitcoin dominance reaches 60%. Currently, Bitcoin dominance is above 50%, indicating that it is not yet time for the altcoin market to flourish.
Bitcoin’s Ominous Future
Cowen predicts a challenging future for Bitcoin leading up to the halving scheduled for April 2024. He suggests that Bitcoin often experiences a significant correction before halving, typically ranging from 40% to 50%. This indicates a potential “secondary scare” for Bitcoin in the coming years.
Hot Take
The stock market’s struggles and the risk-off stance could have negative consequences for altcoin markets. Altcoin accumulation should not commence until Bitcoin dominance reaches 60%. Additionally, Bitcoin may face a significant correction before the halving in April 2024.
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