A closely followed crypto strategist thinks altcoins are about to witness a market meltdown against Bitcoin (BTC).
Analyst Benjamin Cowen tells his 839,200 followers on the social media platform X that altcoin holders are about to experience pain as he believes the crypto market is closely following in the footsteps of the 2019 cycle.
In April of this year, Cowen looked at the total market cap of altcoins (TOTAL3) against Bitcoin and said the chart is a carbon copy of the 2019 cycle.
Back then, Cowen predicted that Bitcoin would see a larger correction once ALT/BTC pairs collapse, creating a scenario where altcoins capitulate against the US dollar.
With the ALT/BTC chart breaking support, the analyst says “it’s time” for the market to see an encore of the 2019 cycle.
“We should finally see ALT/BTC pairs break down soon. Last cycle, they broke down one month before the 1st rate cut, and something similar could play out here too.”
CME’s FedWatch Tool indicates that 100% of traders and investors are expecting the Fed to cut interest rates next month.
Cowen also predicts that Bitcoin Dominance (BTC.D), which tracks how much of the total crypto market cap belongs to BTC, will soar to 60% before altcoins get some relief.
“With some indicators flashing recessionary signals, it means the Fed will begin to cut rates soon, in order to try and minimize the damage and hope for a soft landing.
This means BTC dominance will top soon (probably sometime between Sept.-Dec. 2024).
But first, 60% dominance.”
At time of writing, BTC.D is hovering at 56.73%, indicating that altcoins will have to lose a lot more value against Bitcoin if Cowen’s 2019 comparison sticks.