Trending strategist Benjamin Cowen reveals that a reallocation of funds is occurring in the cryptocurrency investment space with Bitcoin (BTC) emerging as the major beneficiary.
Cowen tells his 783,000 YouTube subscribers that Bitcoin (BTC) dominance is growing as people dump crypto altcoins in favor of the “blue chip” cryptocurrency asset.
Reports by Cowen, even Ethereum (ETH) likewise loses value relative to Bitcoin (BTC) as people reallocate to the king crypto.
“The crypto altcoin market is highly illiquid and people are flocking to the relative safety of the blue chips that sends the dominance of Bitcoin (BTC) higher…
The crypto altcoin market bleeds to Ethereum (ETH) and Bitcoin. Theoretically, Ethereum (ETH) bleeds to Bitcoin (BTC) as well. The dominance goes up and it sends you the Bitcoin/ United States dollar valuation higher at the cost of the crypto altcoin market liquidity.
At some point, the crypto altcoin market liquidity can no longer sustain the Bitcoin (BTC) price… as Bitcoin (BTC) rolls over, the crypto altcoin market gets even more wrecked.”
Our trending cryptocurrency analyst reveals that Bitcoin (BTC) is more appealing as of now than crypto altcoins owing to the prevailing macroeconomic environment.
“We essentially have this dynamic where this liquidity from the lower liquidity assets are seeking out the relative safety of the higher liquid assets, right.
Because in times of economic uncertainty, which I guess times are always uncertain. On the other hand, in times like this where there is there is plenty of macro stuff to talk about: inverted yield curve, high inflation, a more hawkish Federal Reserve than we’ve seen in 40 years, people are going to seek out the relative safety of the blue chips within that investment class…
People that are not in cryptocurrency with sort of scoff at the idea of calling Bitcoin (BTC) a blue chip but it’s all about within the investment class that you’re interested in what is the blue chip considered, right? And in cryptocurrency, it’s Bitcoin.”
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