Altcoins Will Continue to Decline Against Bitcoin, Says Analyst Benjamin Cowen
Crypto analyst Benjamin Cowen predicts that altcoins will continue to lose value against Bitcoin. In a recent video, Cowen explains that the current bearish trend in altcoins’ Bitcoin pairs is a common occurrence before the Bitcoin halving. The halving event, which happens every four years and is scheduled for April 2024, cuts BTC miners’ rewards in half.
Cowen illustrates the depreciation of altcoins against Bitcoin using the example of Cardano (ADA/BTC) over the past year. He emphasizes the repeated pattern of ADA/BTC reaching new lows after each upward movement, resulting in approximately 40% drops.
The analyst believes that this trend will persist as investors shift their capital from altcoins to Bitcoin. According to Cowen, the reason for pre-halving Bitcoin pumps is not increased liquidity but rather a conversion of altcoins into BTC. He suggests that while there may be enough liquidity in the altcoin market to drive Bitcoin’s price higher against the US dollar in the first half of the year, eventually, the altcoin market will be drained.
Hot Take: Altcoins Struggle Against Dominant Bitcoin
As the bearish trend continues for altcoins against Bitcoin, crypto analyst Benjamin Cowen warns investors about their vulnerability. The upcoming Bitcoin halving event and shifting capital from altcoins to BTC contribute to this decline. With repeated downward movements and new lows, altcoins like Cardano face significant challenges. Cowen emphasizes the importance of recognizing this trend and its potential impact on altcoin investments. As the altcoin market loses liquidity, Bitcoin remains the dominant force in the crypto space.
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