Altcoins Will Continue to Decline Against Bitcoin, Says Analyst Benjamin Cowen
Cryptocurrency analyst Benjamin Cowen predicts that altcoins will continue to lose value against Bitcoin. In a recent video, Cowen describes that theย present bearish trend in altcoinsโ Bitcoinย (BTC) pairs is a common occurrence before the Bitcoinย (BTC) halving. The halving event, which happens every four years and is scheduled for April 2024, cuts Bitcoin minersโ bonus in half.
Cowen illustrates the depreciation of altcoins against Bitcoinย (BTC) using the example of Cardanoย (ADA) (ADA/BTC) inย theย previous year. He emphasizes the repeated pattern of ADA/ Bitcoin reaching new lows after each upward movement, resulting in approximately 40% drops.
The analyst believes that this trend will persist as investors shift their financialย resources from altcoins to Bitcoin. According to Cowen, the reason for pre-halving Bitcoinย (BTC) pumps is not increased liquidity but rather a conversion of altcoins into BTC. He impliesย that while there couldย be enough liquidity in the altcoin market to drive Bitcoinโs price higher against the Unitedย States dollar in the first half of the year, soonerย orย later, the altcoin market will be drained.
Hot Take: Altcoins Struggle Against Dominant Bitcoin
As the bearish trend continuesย for altcoins against Bitcoin, cryptocurrency analyst Benjamin Cowen isย warning investors about their vulnerability. The upcoming Bitcoinย (BTC) halving event and shifting financialย resources from altcoins to Bitcoin contribute to this decline. With repeated downward movements and new lows, altcoins like Cardanoย (ADA) face wholeย lotย of challenges. Cowen emphasizes the importance of recognizing this trend and itsย probability impact on altcoin investments. As the altcoin market loses liquidity, Bitcoinย (BTC) remains the dominant force in the cryptocurrency space.
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