Altcoin Crash Might Get Worse: Analyst Predicts More Bloodbath in Crypto Market
The post Altcoin Crash Might Get Worse: Analyst Predicts More Bloodbath in Crypto Market appeared first on Coinpedia Fintech News
Renowned crypto analyst Benjamin Cowen has raised alarm bells in a series of tweets regarding the altcoin market, predicting a protracted period of decline. According to Cowen, the altcoin reckoning is far from over, and he anticipates even deeper losses. The analyst attributes this ongoing reckoning to influencers who continue to encourage massive investments in altcoins, thus prolonging the market downturn. Cowen suggests that unless this trend changes, the altcoin casino will remain open until all funds are depleted.
As long as all these influencers keep publicly YOLOing large sums into altcoins, the altcoin reckoning will continue.
They will tell you to buy the dip all the way down.
The altcoin casino will remain open until all of the money is gone.
— Benjamin Cowen (@intocryptoverse) June 15, 2023
Furthermore, Cowen warns that some altcoin projects may never recover their value, potentially leading to their extinction. While the collective altcoin market capitalization may eventually rebound, he cautions that current investments could become relics in future cycles as new and shiny altcoins capture the attention of investors. Thus, he urges caution in choosing altcoin investments, emphasizing the potential for drastic changes in market preferences.
Because many alt coins will never recover. The collective altcoin market cap could eventually recover, but the alts you are buying now could just become relics, and people might not care about them next cycle.
Next cycle, there will be new shiny altcoins people will care about
— Benjamin Cowen (@intocryptoverse) June 15, 2023
Cowen also points out that many altcoins are currently trading below their prices from March 16th when Bitcoin was last at $25,000. This vulnerability of altcoins amidst market volatility strengthens Cowen’s prediction of a continued downturn.
However, he remains bullish about Bitcoin’s performance, predicting that it will outshine other digital assets. Drawing from historical patterns, the analyst states that altcoins often suffer significant losses during pre-halving periods. He projects Bitcoin’s dominance on the Bitcoin dominance chart (BTC.D) to reach 60%, indicating its increasing market share.
In conclusion, Cowen emphasizes the importance of monitoring Bitcoin’s dominance as a key metric in the crypto space. Neglecting this metric, he warns, could lead to adverse investment decisions. Understanding Bitcoin’s dominance and its relationship with altcoins is crucial for investors seeking to navigate the volatile market effectively.
Filed under: Bitcoin - @ June 17, 2023 4:18 am