Renowned crypto analyst suggests that altcoin season may not arrive until the Federal Reserve takes action.
In a recent video update, crypto expert Benjamin Cowen conveys to his 802,000 YouTube followers that altseason is unlikely to occur until the Fed eases monetary policy and reduces interest rates.
Cowen explains that historically, altcoins have outperformed Bitcoin (BTC) only after the Federal Reserve initiated rate cuts.
“Currently, many altcoins are experiencing a decline, with more falling than rising, leading to a drop in the advance/decline index just like in 2019 before the FED intervened. It plummeted rapidly, and then the FED began cutting rates in July. So, it’s crucial to keep an eye on that because despite calls for altseason and altcoins outperforming Bitcoin, in the last cycle, we didn’t see that until after the FED rate cuts.”
Cowen predicts that altcoins will continue to underperform against the top cryptocurrency until the Federal Reserve changes its course.
“I anticipate Bitcoin dominance to rise to about 60%. I believe altcoins will keep losing ground to the king…I wonder if there will be a significant increase in Bitcoin dominance in the coming months as Bitcoin absorbs liquidity from the altcoin market.”
Currently, BTC’s dominance stands at 55.39% while the total crypto market cap excluding BTC (TOTAL2) is at $1.049 trillion.
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