Closely followed crypto analyst Benjamin Cowen issued a bearish warning for an altcoin referred to as an Ethereum (ETH) rival.
Cowen said smart contract platform Cardano (ADA) could fall lower against Bitcoin (ADA/BTC) as the Federal Reserve has not yet cut interest rates.
“If you look at where it was during the year, it was around 1,600 satoshis, and I said at the time that it would probably reach 800 satoshis in the summer. The crypto Twitter community found this funny. Then it reached 800 satoshi, and I said that this would be the best scenario in early 2022.
But once it gets here, I’m pretty convinced it could go lower, and to some extent I still think so. “The reason I think it might go down is, again, we haven’t gotten to looser monetary policy yet.”
NEWS CONTINUES BELOW
The Federal Reserve’s failure to reduce interest rates is a strategy generally used to support economic recovery. However, according to Cowen, this creates a significant impact on crypto markets and raises the possibility that altcoins, especially Cardano, will have a tougher performance against Bitcoin.
Cowen predicts that the Fed will likely begin lowering interest rates around March 2024, and risky assets like ADA could begin to rally against Bitcoin at that time.
“So the average wait time before the Fed starts to pause is about eight months. Eight months takes you to March…
“When they pause and start to return to looser monetary policy, when interest rates start to fall, that’s when risky assets like altcoins can find a bottom that is resilient to Bitcoin.”
Finally, Cardano (ADA) is trading at $0.38 at press time.
You can follow the current price movement here.