Analyst and Trader Benjamin Cowen shared his assessments that Bitcoin will continue to perform more powerful than subcoins. Experienced name, especially the US financial policies have a direct impact on Bitcoin, which can increase the dominance of Bitcoin, he said. In the Altcoin market, Cowen predicts that a new wave of decrease in the near term. In this process, investors should closely follow market dynamics and FED policies.
Altcoin/Bitcoin Parities under pressure
One of the points that Cowen attracted attention in the last strategy session was the general course of the Altcoin market. According to Total3 data that measures the total market value of crypto currencies other than Ethereum and Bitcoin, Altcoin/Bitcoin parities are currently following a horizontal course. However, according to Cowen, this stagnation can be a harbinger of a possible downward trend. “Altcoin/Bitcoin couples are now stationary. Similar decrease tendency will be observed in the coming weeks,” the Analyst called for Altcoin investors to be careful.
Investors observe that short -term earnings opportunities are reduced with the weakening of volumes in the Altcoin market. Great investors who do not want to take risks in such periods are usually directed to safer ports such as Bitcoin. Especially in the bear market -like periods, the harsh retreats in Altcoins are a cautious atmosphere spreading throughout the market.
Monetary tightening worked for Bitcoin
According to Cowen’s evaluations, the main reason Bitcoin is more powerful than Altcoins is the policy of monetary tightening by the US Federal Reserve (FED). The fact that the FED continues to keep interest rates at high levels and maintains quantitative tightening, directs investors to limited beings such as Bitcoin. Cowen expresses this with the following words: “The basic assumption is the increase in Bitcoin dominance until quantitative tightening ends.”
Bitcoin dominance, ie BTC’s share in the total crypto money market, has been moving upward in recent weeks. This shows that investors are turning to Bitcoin rather than Altcoins during market uncertainty. Especially corporate investors tend to choose Bitcoin, which has less volatility in such uncertainty environments.
A possible change in the policies of Federal Reserve can change this balance, according to Cowen. Bitcoin is expected to maintain its superiority against Altcoins unless there are net signals that the tightening will end at FOMC meetings. This is one of the factors that make Bitcoin stand out in short and medium -term investment strategies.
Bitcoin dominance may turn to new summits
Cowen’s analysis reveals that Bitcoin will come to the forefront not only on price basis, but also in terms of market domination. BTC, which was traded for $ 84.270 at the time of the article, continues to remain strong in the face of other large crypto currencies. The rising dominance rate of Bitcoin shows that investors’ search for safe harbor continues and moves away from risky Altcoin investments.
However, Cowen emphasizes that uncertainties about the US economy are also effective in the market. The fact that the timing of recession expectations and interest rate cuts is not yet clear brings a cautious approach in investment decisions. Bitcoin’s limited supply structure and the resistance in the past crisis periods are among the prominent advantages in this process.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
