Altcoins vs. Bitcoin: Analyst Benjamin Cowen Predicts Continued Downtrend
Crypto analyst Benjamin Cowen believes that altcoins are currently experiencing a downtrend against Bitcoin (BTC) and predicts that this trend will continue. In a recent video, Cowen explains that this bearish trend is a regular occurrence ahead of the Bitcoin halving, which cuts BTC miners‘ rewards in half every four years.
According to Cowen, when Bitcoin experiences a price increase before the halving, altcoins tend to lose value against Bitcoin. This is because altcoins are unable to maintain their support levels in relation to Bitcoin, resulting in continued depreciation. Cowen illustrates this phenomenon by pointing to the performance of Cardano (ADA) against Bitcoin over the past year, showing significant drops in ADA/BTC trading pairs.
The analyst further argues that this trend is likely to persist as many market participants continue to shift their capital from altcoins to Bitcoin. This capital migration causes altcoin liquidity to decrease, eventually leading to a depletion of the altcoin market.
While altcoins may be struggling against Bitcoin at the moment, Cowen’s analysis suggests that Bitcoin’s dominance in the crypto market will continue to rise.
Frequently Asked Questions
1. What is the Bitcoin halving?
The Bitcoin halving refers to the event where the rewards for Bitcoin miners are reduced by half. This event occurs roughly every four years.
2. What happens to altcoins during the Bitcoin halving?
Altcoins often experience a downtrend against Bitcoin leading up to the halving. This is because capital tends to shift from altcoins to Bitcoin, causing altcoin prices to decline in relation to Bitcoin.
3. Why do altcoins lose value against Bitcoin?
Altcoins lose value against Bitcoin when they are unable to maintain their support levels in relation to Bitcoin. This often occurs during periods of Bitcoin price increases before the halving.
Please note that the above information is based on the analysis and opinions of Benjamin Cowen and should not be considered as financial advice. Always conduct thorough research and exercise caution when investing in cryptocurrencies.
