Crypto analyst Benjamin Cowen believes altcoin season, a period when altcoins outperform Bitcoin, is unlikely until the Federal Reserve loosens monetary policy.
Fed’s Influence on Altcoins
Cowen notes that in the previous crypto cycle, altcoins only outperformed Bitcoin after the Fed began cutting interest rates. He observes that many altcoins are currently underperforming, and the advance/decline index is declining, similar to the situation in 2019 before the Fed cut rates.
Bitcoin Dominance to Rise
Cowen predicts that Bitcoin dominance, which measures Bitcoin’s market share relative to other cryptocurrencies, will increase to around 60%. He expects altcoins to continue losing value against Bitcoin as investors shift their funds into the leading cryptocurrency.
Current Market Situation
As of writing, Bitcoin’s dominance is at 55.39%, while the total market capitalization of all cryptocurrencies excluding Bitcoin is $1.049 trillion.
