The Cryptocurrency Market Entering a Harsh Phase, Warns Analyst Benjamin Cowen
Analyst Benjamin Cowen is cautioning that the cryptocurrency market is entering a challenging phase. As investors become more risk-averse, Bitcoin’s dominance in the overall crypto market capitalization is on the rise. Cowen explains that during this period, Bitcoin’s value may decrease, but its market dominance increases as alternative cryptocurrencies experience even greater declines in value. This phase is considered the most brutal segment of the market cycle.
Predictions for Bitcoin and Ethereum
In a recent YouTube video, Cowen predicts that Bitcoin’s market dominance will likely peak at around 60%, similar to previous cycles. He utilizes Fibonacci retracement levels to make this prediction and acknowledges that the actual percentage could vary slightly between 59% and 63%. Cowen also addresses the impact of stablecoins on Bitcoin’s dominance, stating that the presence of stablecoins prevents it from surging to 65% or 70%.
Regarding Ethereum, Cowen forecasts a gradual decline in the ETH/BTC ratio to approximately 0.037, which translates to about $1,016. Although the decline has been slower than initially expected, Cowen affirms that the trend has been consistently downward for an extended period.
Hot Take: Cryptocurrency Market Entering Challenging Phase
Analyst Benjamin Cowen warns that the cryptocurrency market is about to face a challenging phase. As investors become more risk-averse, Bitcoin’s dominance is increasing while altcoins experience greater declines in value. This phase is considered the most brutal part of the market cycle. Cowen predicts that Bitcoin’s market dominance will peak at around 60%, with some variation between 59% and 63%. He also discusses how stablecoins prevent Bitcoin’s dominance from reaching higher percentages. Additionally, Cowen forecasts a gradual decline in Ethereum’s ETH/BTC ratio. Despite a slower-than-expected decline, the trend remains downward. Brace yourself for a harsh period in the crypto market.
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