In the ever-evolving world of cryptocurrency, the battle between altcoins and Bitcoin (BTC) is once again taking center stage. Particularly followed crypto analyst Benjamin Cowen expressed his concerns, pointing to a recurring pre-halving trend that has seen coins lose ground against the flagship cryptocurrency. Here are the details…
Benjamin Cowen is bearish on altcoins
In his latest video, Cowen, who has a significant following on YouTube with 788,000 subscribers, examined the difficult landscape that altcoin projects currently find themselves in when trading against Bitcoin. He emphasized that this trend is far from new and tends to emerge towards Bitcoin halving events. Cowen said:
Do you remember what happened when Bitcoin rose in the pre-halving years? It breaks altcoins out of Bitcoin support levels so that when Bitcoin falls back, those altcoins have nowhere to hide. Altcoins continue to be devastated on Bitcoin pairs and are falling further.
Why is halving important?
For those unfamiliar with the concept, the Bitcoin halving, which occurs every four years, involves halving the rewards earned by BTC miners. The next halving is scheduled for April 2024, and analysts like Cowen believe it plays an important role in the dynamics between Bitcoin and altcoins. Cowen used the example of Cardano (ADA) versus Bitcoin (ADA/BTC) last year to illustrate the extent of the altcoins’ depreciation against Bitcoin. He highlighted a recurring pattern in which coins hit lower levels against Bitcoin, often losing around 40% in value. Cowen’s message was clear. “You should be aware of this trend. “This is a brutal trend.” he said.
Cowen went on to share his views on why he predicts altcoins will continue to struggle against Bitcoin. He believes that market participants will shift their capital from altcoins to Bitcoin. “The reason we are seeing these BTC pumps in the year before the halving is not because there is a lot of new liquidity entering the market,” the analyst said. This is because a lot of people are converting their altcoins into Bitcoin,” Cowen explained. Cowen also noted that the first half of the year leading up to the halving could provide enough liquidity for altcoins to hit new annual highs against the US dollar, but eventually the altcoin market could dry up.
There is a war between cryptocurrencies
As cryptocurrency enthusiasts and investors monitor the ongoing developments in the crypto market, the battle between altcoins and Bitcoin remains an intriguing and vital aspect of this ecosystem. With the 2024 Bitcoin halving on the horizon, it is certain that the dynamics between these crypto assets will continue to evolve, forcing investors to make critical decisions as they navigate the ever-changing crypto landscape.
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