Renowned analyst Benjamin Cowen argues that many altcoins may not survive the year-long cryptocurrency winter. In a new YouTube video, Cowen predicts that altcoins will stabilize.
Cowen expects small-cap altcoins to face another difficult period in the coming months, possibly through 2024. He expects altcoins to experience a recession before a revival in 2025.
Will altcoins be reborn?
Some altcoins may reveal their true value in the interim period, while others may fade away or fail to hit all-time highs in the next bull market. He argues that this trend has occurred in previous cycles as well.
Read more: What are altcoins? Alternative Cryptocurrency Guide.
He argues that not all cryptocurrencies may enjoy all-time highs like Bitcoin (BTC) during a bull market.
The Fed Will Become the Biggest Altcoin Influencer
The U.S. Federal Reserve (Fed) played a key role in Cowen’s analysis. According to analysts, the Federal Reserve’s monetary policy has a significant impact on the cyclical behavior of altcoins.
“I think I’m in a depression phase right now. I think it will come. And after that, I think there will be an altcoin renaissance, but it won’t come until the Fed changes course.”
Analysts do not believe the U.S. central bank will change course.
“There is a chance they will change direction this year, but I don’t think they will. “Just because they change direction this year doesn’t mean the altcoin market will bounce back immediately.”
The only reason the Fed can change policy is if there is a problem with the U.S. economy. He added that the fight to curb inflation is not over as prices continue to rise.
Read more: How to use cryptocurrency to protect yourself from inflation.
A change in Fed policy will generally be accompanied by an economic downturn that is detrimental to altcoins or Bitcoin.
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