Bitcoin Dominance Will End, Says Cowen

Bitcoin dominance shows Bitcoin's share of the total crypto market cap, revealing market strength and investor sentiment.

Crypto analyst Benjamin Cowen believes that Bitcoin (BTC) dominance will continue to increase regardless of the performance of USD and BTC.

Cowen, who is known for his stance on Bitcoin’s dominance, shared his thoughts in a recent analysis. According to Cowen, Bitcoin’s dominance is not affected by the news cycle, altcoin upgrades, the deflationary mechanism or memecoins. Instead, it is all about monetary policy.

Cowen says that 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 that 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.

Bitcoin 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.

However, the analyst and founder of Into the Cryptoverse believes that 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.

Cowen believes that Bitcoin dominance will top out at 60% – so time for altseason soon?

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