Crypto Expert Warns of Altcoin Market Turbulence
The widely followed crypto analyst Benjamin Cowen has expressed concerns that numerous altcoins may be facing a grim future in the coming year, with limited chances of recovery.
In a recent video update, Cowen discussed the possibility of an “altcoin reckoning” on the horizon, where many cryptocurrencies could struggle to regain their previous value.
Cowen believes that although the overall altcoin market may eventually recover, a significant number of current altcoins may not be part of that resurgence.
While some might thrive and reach new all-time highs, he predicts that a substantial portion of these altcoins may never regain their previous highs.
Instead, they could remain within a range of approximately $323.5 billion, possibly dropping further to around $290 billion.
This could lead to a prolonged period of decline, potentially culminating in a state of depression, with the possibility of recovery not materializing until 2024.
According to Cowen, the emergence of an “altcoin Renaissance” following this depression phase may depend on the Federal Reserve altering its stance on monetary policies.
He suggests that a shift by the Fed is unlikely to occur this year but anticipates it happening in the next year.
However, even if the Fed does pivot this year, Cowen believes that an immediate revival of the altcoin market is unlikely, as any potential adjustments by the Fed are expected to be relatively small.