Here's How Bitcoin And Altcoins Will Behave 'Until Fed Cuts Rates,' According To Veteran Crypto Analyst

Crypto analyst Benjamin Cowen sees Bitcoin’s BTC/USD dominance increasing further despite recent market fluctuations.

What Happened: In a detailed thread, Cowen addressed the recent speculation that Bitcoin dominance has peaked following a sharper decline in BTC compared to altcoins over the past few days.

He maintains his stance that Bitcoin dominance will continue to rise, basing his argument on historical patterns and current market conditions. Currently, Bitcoin’s dominance stands at 53.4%.

Cowen points out that Altcoin/BTC pairs are oscillators, currently sitting well above their historical range lows. He notes, "If you zoom in, you can see that ALT /BTC pairs have rallied from 0.36 back to 0.40 over the last week. Note that 0.36 was the lowest level ALT/BTC pairs have seen in years, so all prior alt season calls were definitely premature."

The analyst draws parallels to 2019 when Altcoin/BTC pairs briefly bounced before ultimately declining further. He suggests a similar pattern could unfold in the current market cycle.

Also Read: Congressman Matt Gaetz Introduces Bill To Allow Federal Tax Payments In Bitcoin

Why It Matters: Cowen’s analysis challenges the prevailing narrative among some crypto enthusiasts who believe altcoins are poised for a breakout. Furthermore, Cowen highlights a potential cyclical pattern, noting that significant rallies in Altcoin/BTC pairs have historically occurred in post-halving years. "That would correspond to 2025 if it repeats again, not 2024," he explains.

What’s Next: The trader maintains his view that Altcoin/BTC pairs will continue to decline until the Federal Reserve cuts rates or resumes quantitative easing. He cautions against prematurely anticipating this shift, stating, "It is tempting to front run the process, but this cycle has shown time and time again that BTC dominance is going higher than most people think it is."

This analysis suggests that investors and traders in the crypto space may need to reassess their strategies and expectations for altcoin performance in the near term.

The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.