A prominent crypto strategist believes altcoins will suffer a market crash compared to Bitcoin (BTC).
Analyst Benjamin Cowen told his 839,200 followers on social media platform X that altcoin holders will soon suffer as he believes the cryptocurrency market is closely following the 2019 cycle.
In April of this year, Cowen looked at the total market cap of altcoins (TOTAL3) against Bitcoin and said that the chart followed the 2019 cycle.
At the time, Cowen predicted that if the ALT/BTC pair crashed, Bitcoin would experience a larger correction, which would create a scenario where altcoins would capitulate against the US dollar.
As the ALT/BTC chart breaks support, the analyst says it is “time” for the market to see a resurgence of the 2019 cycle.
“We will finally be able to see how/Bitcoin The pair will soon break down. Last cycle it broke down a month before the first rate cut, and something similar could happen here.”
According to CME’s FedWatch tool, 100% of traders and investors expect the Fed to cut rates next month.
Cowen also predicted that Bitcoin Dominance (BTC.D), which tracks BTC’s share of the total cryptocurrency market cap, will surge to 60% before altcoins ease somewhat.
“The fact that some indicators are flashing recession signals means that the Fed will soon start cutting rates in an effort to limit the damage and have a soft landing.
This means that BTC dominance will soon peak (probably between September and December 2024).
But first, we need 60% dominance.”
At the time of writing, BTC.D stands at 56.73%, which shows that if Cowen’s 2019 comparison holds true, the altcoin will lose significantly more value than Bitcoin.
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