Stock Market’s Impact on Altcoins & Bitcoin’s Halving Roadmap
Crypto strategist Benjamin Cowen believes that the current strength of the stock market could influence the short-term outlook for all cryptocurrencies other than Bitcoin.
Cowen recently discussed a strategy in which he explained that if the cautious approach taken by the stock market continues, it could have a negative impact on alternative cryptocurrencies.
This cautious approach usually indicates that investors are refraining from active participation or withdrawing their investments from the market.
Cowen explains that if the trend of the S&P 500 index remaining cautious continues for an extended period, which tends to occur around August or September of the pre-election year, there is a possibility that Bitcoin’s value could drop below its 20-week simple moving average. If this happens, it might trigger a downward trend in the altcoin market.
Additionally, Cowen points out that if the altcoin market’s performance, represented by the TOTAL3 metric (encompassing the market cap of all cryptocurrencies except Bitcoin and Ethereum), struggles to surpass its previous peak from October 2022 during a time when market participants are taking on more risk, there is a likelihood of the market hitting a new low during this cautious period.
Cowen notes that Bitcoin’s dominance in the market currently stands above 50% when it comes to predicting a potential shift in favor of altcoins. He has previously suggested that it could be opportune to consider investing in altcoins when Bitcoin’s dominance reaches the 60% mark.
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However, since that level has not been reached yet, Cowen believes that the conditions for a thriving altcoin market are not currently met.
The Bitcoin dominance (BTC.D) chart monitors the portion of the total cryptocurrency market capitalization attributed to Bitcoin.
Shifting the focus to Bitcoin, Cowen anticipates a challenging path ahead for the primary cryptocurrency due to the upcoming halving event scheduled for April 2024.
He observes that historically, Bitcoin has often experienced a secondary market correction leading up to such halving events. In fact, if one examines the price trends of Bitcoin preceding previous halvings, a consistent pattern emerges, featuring corrections of approximately 40% to 50% prior to the halving event.
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.
