Crypto analyst Benjamin Cowen is sounding the alarm. He reckons altcoins are about to take a nosedive against Bitcoin.
Cowen, with a whopping 839,200 followers on X, warns of pain ahead for altcoin holders. He thinks the crypto market is mirroring the 2019 cycle.
In April, Cowen spotted a pattern. The total altcoin market cap against Bitcoin looked eerily similar to 2019.
He predicted a bigger Bitcoin correction once ALT/BTC pairs collapse. This would lead to altcoins capitulating against the US dollar.
Now, with ALT/BTC breaking support, Cowen says it's showtime. He expects a repeat of the 2019 scenario.
"We should finally see ALT/BTC pairs break down soon," Cowen states. "Last cycle, they broke down one month before the 1st rate cut, and something similar could play out here too."
The CME FedWatch Tool backs this up. It shows 100% of traders expect a Fed rate cut next month.
Cowen's not done yet. He predicts Bitcoin Dominance will hit 60% before altcoins catch a break.
He explains, "With some indicators flashing recessionary signals, it means the Fed will begin to cut rates soon, in order to try and minimize the damage and hope for a soft landing."
This spells trouble for altcoins. Cowen adds, "This means BTC dominance will top soon (probably sometime between Sept.-Dec. 2024). But first, 60% dominance."
As of now, Bitcoin Dominance sits at 56.73%. If Cowen's 2019 comparison holds water, altcoins are in for a rough ride.
The crypto market's no stranger to volatility. But Cowen's prediction suggests we're in for a wild one.
So, what's a crypto investor to do? Keep a close eye on Bitcoin Dominance and those Fed rate decisions.
Remember, though, this is just one analyst's take. The crypto market's full of surprises, and nothing's set in stone.
Still, Cowen's track record and massive following make his predictions worth considering. Altcoin holders, you've been warned.