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 the present bearish trend in altcoins’ Bitcoin (BTC) pairs is a common occurrence before the Bitcoin (BTC) halving. The halving event, which happens every four years and is scheduled for April 2024, cuts Bitcoin miners’ bonus in half.
Cowen illustrates the depreciation of altcoins against Bitcoin (BTC) using the example of Cardano (ADA) (ADA/BTC) in the 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 financial resources from altcoins to Bitcoin. According to Cowen, the reason for pre-halving Bitcoin (BTC) pumps is not increased liquidity but rather a conversion of altcoins into BTC. He implies that while there could be enough liquidity in the altcoin market to drive Bitcoin’s price higher against the United States dollar in the first half of the year, sooner or later, the altcoin market will be drained.
Hot Take: Altcoins Struggle Against Dominant Bitcoin
As the bearish trend continues for altcoins against Bitcoin, cryptocurrency analyst Benjamin Cowen is warning investors about their vulnerability. The upcoming Bitcoin (BTC) halving event and shifting financial resources from altcoins to Bitcoin contribute to this decline. With repeated downward movements and new lows, altcoins like Cardano (ADA) face whole lot of challenges. Cowen emphasizes the importance of recognizing this trend and its probability impact on altcoin investments. As the altcoin market loses liquidity, Bitcoin (BTC) remains the dominant force in the cryptocurrency space.
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