Renowned crypto analyst emphasizes that altcoin season is unlikely until the Federal Reserve takes action.
In a recent video update, crypto expert Benjamin Cowen, with a massive following of 802,000 subscribers on YouTube, suggests that altseason may not occur until the Fed eases monetary policy and reduces interest rates.
Cowen points out that during the previous cycle, altcoins performed better than Bitcoin (BTC) only after the Federal Reserve began cutting rates.
He notes, “Many altcoins are experiencing a decline, with more going down than up, leading to a drop in the advance/decline index, similar to what happened in 2019 before the FED’s rate cut. It plummeted rapidly before the FED initiated the rate cut in July. Therefore, it is crucial to monitor this trend because despite many predictions for altseason and altcoins to surpass Bitcoin, in the last cycle, that phase was only reached after the FED reduced rates.”
Source: Benjamin Cowen/X
Cowen further predicts that altcoins will continue to lose value against the top cryptocurrency by market cap until the Federal Reserve changes its stance.
“I anticipate that Bitcoin’s dominance will rise to approximately 60%. I believe altcoins will keep retreating to the dominant player… I wonder if we will witness a significant increase in Bitcoin’s dominance in the coming months as Bitcoin absorbs liquidity from the altcoin market.”
BTC’s dominance currently stands at 55.39%, while the total crypto market cap excluding BTC (TOTAL2) is currently at $1.049 trillion.
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