A leading cryptocurrency strategist believes that altcoins will soon witness a market crash against Bitcoin (BTC).
Analyst Benjamin Cowen told his 839,200 followers on social media site X that altcoin holders will soon experience hard times as he believes the crypto market is following in the footsteps of the 2019 cycle.
In April this year, Cowen compared the total market cap of altcoins (TOTAL3) to Bitcoin and said the chart was an exact replica of the 2019 cycle.
Cowen then predicted that Bitcoin would face a larger correction after the ALT/BTC pair crashed, creating a scenario where altcoins capitulate against the US dollar.
The analyst says that with support broken on the ALT/BTC chart, “it’s time” for the market to see a repeat of the 2019 cycle.
“We must finally see ALTO/BTC “The pairs are going to break soon. In the last cycle, they broke a month before the first rate cut, and something similar could happen here.”
CME’s FedWatch tool shows that 100% of traders and investors expect the Fed to cut interest rates next month.
Cowen also predicts that Bitcoin’s (BTC.D) dominance metric, which tracks how much of the total cryptocurrency market cap is owned by BTC, will soar to 60% before altcoins get some relief.
“With some indicators signaling a recession, this means the Fed will soon begin cutting rates to try to minimize the damage and hope for a soft landing.
This means that BTC dominance will soon peak (likely somewhere between September and December 2024).
But first, 60% dominance.”
At the time of writing, BTC.D is hovering at 56.73%, suggesting that altcoins are set to lose much more value against Bitcoin if Cowen’s comparison to 2019 is correct.
