Closely followed crypto analyst Benjamin Cowen believes that a change in monetary policy will likely be the catalyst for an “altseason,” during which altcoins will significantly outperform Bitcoin (BTC).

In a recent strategy session, Cowen compares the Federal Reserve’s balance sheet with the Ethereum (ETH) versus Bitcoin (ETH/BTC) ratio. He notes that in previous market cycles, altseasons did not begin until the Fed stopped quantitative tightening (QT) and increased the assets on its balance sheet.

“The key factor in this forecast was the understanding of tighter monetary policy and the knowledge that in the previous cycle, the bottom of the ETH/BTC ratio or the top of the inverse ratio did not occur until the Fed ended quantitative tightening…

You can see that the Fed is following the same pattern this cycle as it did in the previous one, and just like last time, ETH has lost value compared to Bitcoin. This can also be said for many other altcoins…

In fact, if you look at a basket of altcoins, you can see that they have reached new lows this week. My argument has always been that they will likely hit the lower range before there is any real hope for an altseason to occur. You can also look at the OTHERS/BTC ratio and see that it has been dropping since the beginning of 2022.

There are many people who refer to this as the ‘memecoin supercycle’ and try to get you excited about altseason, claiming that these memecoins will outperform. However, in the end, they just continue to lose value compared to Bitcoin.”


Source: Benjamin Cowen/YouTube

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