Crypto analyst Benjamin Cowen suggests that altcoins could be in for a rough patch for the rest of 2023. Based on historical data, Cowen warns that altcoins may underperform in 2023. Here are the details…
According to Cowen, the performance of altcoins often varies depending on Bitcoin’s halving periods. Each halving period in which Bitcoin’s block reward is halved usually results in a massive price increase. However, Cowen states that altcoins generally lag behind and struggle before this event. The next halving event will take place in 2024. Cowen argues that based on historical data, altcoins are likely to perform poorly for the remainder of 2023.
“The point is, no matter what S&P does, there’s a good chance that crypto, especially the altcoin market, will suffer for the rest of the year; In the years leading up to the halving, it is quite common for altcoins to really struggle, especially in the last half of the year. So keep in mind that this is quite normal. “Even outside of economic recession or fear of recession, it’s not that uncommon to see this type of behavior.”
The analyst also warns that although Bitcoin is on the rise this month, BTC may close the month in red, that is, with a decline, as in 2019, the year before the previous halving.
“Bitcoin has backtested the bull market support band and I know a lot of people are hopeful that it will end the month in the green and end the downtrend, but I want people to be aware that we saw something very similar in September 2019, where it rebounded for the first few weeks and then slowly fell.” I want.”
According to Trader, some altcoins have fallen this month, which supports the thesis that altcoins will continue to struggle for months.
“Ethereum (ETH) fell by 3.31%. Cardano (ADA) is down almost 4% this month. Polkadot (DOT) is down almost 6%. Solana (SOL) fell 0.5%. Avalanche (AVAX) is down 11% this month. Most of these altcoins have fallen this month.
Look at Dogecoin (DOGE), down 3%. Look at Polygon (MATIC), it’s down almost 5%. XRP increased slightly by approximately 0.16%. It’s down almost 27% last month, compared to, say, ADA’s 16% drop last month, or DOT’s 16% drop last month, or Ethereum’s 11% drop last month, so yes XRP is on the rise this month. It experienced a significant decline after rising last month. Essentially, the SEC erased most of the gains it made after the Ripple news. “Litecoin (LTC) is currently up a slight 1.88% this month after falling almost 31% last month.”
Although Cowen’s view is based on an analysis based on historical data, future price movements are not always predictable. The crypto market is a highly volatile market and many factors can affect prices. Crypto investors should always be careful and do their own research.
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