Altcoins have suffered more in the cryptocurrency market since the Bitcoin price crash, causing many investors to suffer losses. This is not unusual, as these altcoins are known to be more volatile than Bitcoin, so their price movements may be more pronounced. Given the recent decline, a recovery in altcoins is expected. However, one analyst disagrees with this assessment.
Altcoin Headed For 40% Collapse
In an analysis published on X (formerly Twitter), veteran cryptocurrency analyst Benjamin Cowen shocked the cryptocurrency community with his expectations for altcoins. According to our analysis, the worst for the altcoin market is not over yet. Because there will be more collapses in the future.
Cowen explained that this was analyzed using altcoin and Bitcoin pairs, and each appears to be weak against the peak cryptocurrency. This is due to expectations of an interest rate cut, and based on past performance, the downward trend is expected to continue.
The cryptocurrency analyst pointed to the 2019 interest rate cut and how altcoins reacted to that development at the time. Following the interest rate cut, altcoins plummeted against Bitcoin, with major players recording losses of up to 40% during this period. “Maybe this time will be different? This means the ALT/BTC pair is down another 40% from here in the coming months,” Cowen said.
Cowen expects this to happen regardless of what happens in the markets in the meantime. He explains that even if the market recovers in the short term, this does not invalidate the thesis. “The short-term countertrend does not invalidate this view,” he said.
If this happens again, it could make an already harsh market trend even bloodier. As of this writing, altcoin market capitalization has already fallen below $1 trillion, but a 40% drop from there could push it down to $600 billion.
Cryptocurrency market falls due to Bitcoin crash
The Bitcoin crash was brutal, but the impact on altcoins was even more pronounced. Ethereum has held up well over this period, with declines of less than 4%, but others such as Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI) have lost an average of 9% over the past year. 24 hours.
Meme coins were not left out of the carnage, with market leader Dogecoin down 6% to $0.126 and Pepe (PEPE) down 7.74% to $0.0000063. BONK recorded a 5% decline to erase some of last week’s gains, while Shiba Inu fell 4.18%.
But amidst all this, there were some market winners, with Optimism (OP) posting a 12% gain. According to data from CoinMarketCap, Cosmos (ATOM) rose 9.8% and Starknet (STRK) rose 9%, recording the highest gains of the day.
Altcoin market cap at $952 billion | Source: Altcoin total market cap from Tradingview.com
Featured image from Analytics Insight, chart from Tradingview.com
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