Altcoin Season Unlikely Until Fed Cuts Rates, Says Crypto Analyst
An altcoin eruption should not be expected by investors until the next move of the Federal Reserve according to a popular crypto analyst.
Crypto expert Benjamin Cowen explained that it is unlikely to have an altcoin season before the Fed eases monetary policy and cuts interest rates.
Cowen noted that, in the last cycle, altcoins only began outperforming Bitcoin after the Fed started reducing rates.
He said that currently many altcoins are falling like what happened in 2019 prior to rate cuts by the Fed. “A lot of people are calling for altseason, but in the last cycle, that phase didn’t occur until after the Fed cut rates” he said.
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According to Cowen, unless there is any change of stance by Fed it will continue losing value compared to Bitcoin. He predicted that Bitcoin’s market dominance would edge up towards 60% while alternative coins would continue bleeding back into Bitcoin.
“I see bitcoin’s dominance increasing significantly over at least several months as it mops up liquidity from alts,” he added.
Bitcoin has dominated with a market share of 55.39%, while total cryptocurrency market cap excluding BTC stands at $1.049 trillion now.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
