- Benjamin Cowen asserts that regardless of market movements or external factors, Bitcoin dominance will continue to rise.
- Cowen attributes the trend in Bitcoin dominance not to the news cycle or altcoin activities, but to overarching monetary policy.
- However, he predicts Bitcoin’s dominance will soon reach its peak, potentially setting the stage for an altcoin season as monetary policy loosens.
Bitcoin dominance will keep going up, according to Benjamin Cowen. Cowen, who is known for his stance on Bitcoin’s dominance said that no matter what happens, BTC’s dominance will increase whatever the USD and Bitcoin are doing.
If Bitcoin goes up on its USD pair, Bitcoin dominance will go higher, if Bitcoin goes down on its USD pair, Bitcoin dominance will go higher.
Benjamin CowenRelated: Coinbase Challenges SEC’s Proposal on DEX Regulation, Citing ‘Irrational’ Analysis and Threat to Innovation
According to Cowen this has nothing to do with the news cycle, altcoin upgrades, the deflationary mechanism or memecoins – instead it’s all about monetary policy.
It has nothing to do with anything else that a lot of people are focusing on.
Benjamin CowenCowen says after the Covid crash in 2020, things got very “overheated” in 2021 and the following rate increase by the Fed caused investors to “systematically flee higher-risk assets, in each asset class, for lower-risk assets”.
Bitcoin Dominance to End, Says Cowen
Cowen believes Bitcoin is now in the final stretch “of this multi-year rally”, based on past cycle performance when three years of Bitcoin dominance are followed by an alt season – drawing in retail investors.
The way the cycle works is, you get an altseason year and then you get three years that involve Bitcoin dominance going higher. It is in year four when retail investors typically arrive in mass and that’s why the Bitcoin dominance goes down.
Benjamin CowenBitcoin dominance shows Bitcoin’s share of the total crypto market cap, revealing market strength and investor sentiment. High dominance indicates a preference for Bitcoin, while low dominance suggests growing interest in altcoins, influencing investment strategies.
According to Cowen, retail investors wrongfully assume that “altcoins will always outperform Bitcoin” because that’s all they saw “when they arrived”. Cowen says “these people” spend the following three years waiting for altcoin season, “leading to disappointment” as the Bitcoin dominance grows.
Related: Bernstein Analysts Believe Kamala Harris’ Rise Reason for Weak Bitcoin
But, the analyst and founder of Into the Cryptoverse believes Bitcoin dominance will soon end and eventually, around late 2024 and into 2025 will start to decline. This coincides with a likely loosening of US monetary policy later this year.
Monetary policy is going to loosen up soon and because monetary policy is loosening up soon, it means Bitcoin dominance is going to top soon.
Benjamin CowenCowen believes Bitcoin dominance will top out at 60% – so time for altseason soon?
Credit: Source link
