Trending strategist Benjamin Cowen reveals that a reallocation of funds is occurring in the cryptocurrency investment space with Bitcoinย (BTC) emerging as the major beneficiary.
Cowen tells his 783,000 YouTube subscribers that Bitcoinย (BTC) dominance is growing as people dump cryptoย altcoins in favor of the โblue chipโ cryptocurrency asset.
Reportsย by Cowen, even Ethereumย (ETH) likewise loses value relative to Bitcoinย (BTC) as people reallocate to the king crypto.
โThe cryptoย altcoin market is highly illiquid and people are flocking to the relative safety of the blue chips that sends the dominance of Bitcoinย (BTC) higherโฆ
The cryptoย altcoin market bleeds to Ethereumย (ETH) and Bitcoin. Theoretically, Ethereumย (ETH) bleeds to Bitcoinย (BTC) asย well. The dominance goes up and it sends you the Bitcoin/ Unitedย States dollar valuation higher at theย cost of the cryptoย altcoin market liquidity.
At some point, the cryptoย altcoin market liquidity can no longer sustain the Bitcoinย (BTC) priceโฆ as Bitcoinย (BTC) rolls over, the cryptoย altcoin market gets even more wrecked.โ
Ourย trending cryptocurrency analyst reveals that Bitcoinย (BTC) is more appealing asย ofย now than cryptoย altcoins owingย to the prevailing macroeconomic environment.
โWe 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. Onย theย otherย hand, in times like this where thereย is thereย is plentyย of macro stuff to talk about: inverted yield curve, high inflation, a more hawkish Federal Reserve than weโve seen in 40 years, people are going to seek out the relative safety of the blue chips within that investment classโฆ
People that are not in cryptocurrency with sort of scoff at the idea of calling Bitcoinย (BTC) a blue chip but itโs all about within the investment class that youโre interested in what is the blue chip considered, right? And in cryptocurrency, itโs Bitcoin.โ
I
Generated Image: Midjourney
