A widely followed crypto analyst says that investors shouldn’t expect altcoin season until the Federal Reserve makes its next move.
In a new video update, crypto strategist Benjamin Cowen tells his 802,000 YouTube subscribers that altseason likely won’t happen until the Fed loosens monetary policy and cuts interest rates.
According to Cowen, in the last cycle, altcoins outperformed Bitcoin (BTC) only after the Federal Reserve began to cut rates.
“There’s a lot of altcoins that are actually going down, there’s more going down than going up and that’s why the advance/decline index is dropping off again and it also dropped off right over here in 2019 just before the FED cut.
It dropped off very, very quickly and then of course the FED started to cut in in July, so I would keep an eye on that because a lot of people they keep calling for altseason and whatnot and for altcoins to durably outform Bitcoin but last cycle we didn’t reach that phase until after the FED cut rates.”
Cowen goes on to say that he expects altcoins to bleed out against the top crypto asset by market cap until the Fed reverses course.
“My expectation is that Bitcoin dominance is going to go up to around 60%. I think altcoins will continue bleeding back to the king…
I do wonder if you’re going to see a very big surge in Bitcoin dominance over the next few months as Bitcoin continues to just sort of absorb that liquidity from the altcoin market.”
BTC”s dominance level is currently at 55.39% while the total crypto market cap excluding BTC (TOTAL2) is sitting at $1.049 trillion at time of writing.
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The post Don’t Expect Altseason Until This Happens, According to Crypto Analyst Benjamin Cowen appeared first on The Daily Hodl.