Benjamin Cowen, a renowned crypto analyst, predicts that a shift in monetary policy will likely trigger an “altseason,” a period in which altcoins significantly outperform Bitcoin (BTC).
In a recent strategy session, Cowen compares the Fed balance sheet with the Ethereum (ETH) versus Bitcoin (ETH/BTC) ratio. He notes that in previous market cycles, altseasons did not commence until the Fed ended quantitative tightening (QT) and increased the assets on its balance sheet.
“The basis for this forecast lies in the understanding of tighter monetary policy. In the last cycle, we did not witness the bottom of ETH/BTC or the peak of BTC/ETH valuation until the Fed ended quantitative tightening…
This cycle, the Fed has been following the same pattern as the previous one, and as a result, ETH has lost value to Bitcoin. The same can be said for many altcoins…
In fact, if we look at a basket of altcoins, we can observe that they have reached new lows this week. My argument has always been that they will likely test the lower range before there is any significant hope for an altseason. If we also consider OTHERS/BTC, we can see that it has been declining since the beginning of 2022.
There are many who refer to this as the ‘memecoin supercycle’ and try to generate excitement about altseason, claiming that memecoins will outperform. However, in reality, they continue to lose value compared to Bitcoin.”
Source: Benjamin Cowen/YouTube
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook, and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
