Bitcoin (BTC) Dominance Against Altcoins is Likely to Increase Amid Market Dips

Crypto expert Benjamin Cowen believes the ongoing market trend does not define the future of Bitcoin's dominance against altcoins.

Prominent crypto analyst Benjamin Cowen has shared his thoughts on the recent market trend and its impact on Bitcoin's (CRYPTO: BTC) dominance against altcoins.

While many have observed that altcoins have outperformed BTC in the past week, some are speculating that this marks the beginning of the end for BTC's dominance. However, Cowen believes that a deeper analysis of historical patterns and broader market cycles suggests otherwise.

Examining Historical Patterns

According to Cowen, when analyzing the performance of altcoins relative to Bitcoin, it's crucial to consider a metric known as the ALT/BTC pair. This pair showcases the collective performance of altcoins against BTC, offering insights into the overall market trend.

Examining theチャート, Cowen highlights that these ALT/BTC pairs have seen a bounce from 0.36 to 0.40 over the past week. While this may seem like a significant gain, Cowen cautions against making hasty conclusions about an impending alt season.

“Many are pointing out that #BTC dumped harder than #ALTs over the last few days, and are speculating that the bleed of ALTs to BTC is over and that #BTC dominance has topped,” Cowen observes.

“I still disagree and think BTC dominance is going higher. A thread-.”

Drawing parallels to 2019, Cowen points out that the ALT/BTC pairs bounced from 0.35 to 0.42 before ultimately rolling over to 0.25. This historical precedent suggests that the current bounce may not necessarily indicate a sustained reversal in Bitcoin dominance.

“Notice anything with the 0.36 level? It's the lowest these ALT/BTC pairs have seen in years,” Cowen notes.

Bitcoin Dominance and Market Cycles

Beyond analyzing the performance of altcoins relative to Bitcoin, Cowen also emphasizes the importance of considering broader market cycles. Specifically, he highlights that rallies in altcoin performance have occurred in post-halving years during previous cycles.

“If you zoom out to the yearly, you can see these massive rallies in #ALT / #BTC pairs,” Cowen explains.

“They both occurred in post-halving years. That would correspond to 2025 if it repeats again, not 2024.”

This observation suggests that if the market continues to follow a pattern similar to previous cycles, the next major altcoin rally might not be expected until 2025, rather than 2024, as many in the crypto community have anticipated.

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Factors Influencing Market Dynamics

Finally, Cowen touches upon the factors that he believes will continue to influence the performance of altcoins and Bitcoin dominance in the coming months.

According to the analyst, key macroeconomic conditions, such as the cutting of Federal Reserve interest rates and/or the return of quantitative easing, will be crucial in determining the performance of altcoins.

“My view remains the same – #ALT / #BTC pairs will continue to bleed until the Fed cuts rates and/or QE returns,” Cowen states.

“Don't try to front-run this process. This cycle has surprised everyone repeatedly w/ how much BTC dominance has bled.”

While many in the crypto community have been quick to call the top on Bitcoin dominance, Cowen's analysis suggests that there is still more room for Bitcoin to maintain its higher market dominance in the long run.

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