Crypto analyst Benjamin Cowen believes that altcoins are poised to outperform Bitcoin in the coming months. He points to a recession indicator that suggests the Federal Reserve will soon loosen monetary policy.
Why Altcoins Might Shine
Cowen, who has over 800,000 YouTube subscribers, highlights the Sahm Rule Recession Indicator. This indicator signals a potential recession when the unemployment rate rises significantly. It recently hit a key threshold, suggesting a recession could be on the horizon.
According to Cowen, a recession would likely lead to looser monetary policy, which could benefit altcoins. He explains that looser monetary policy typically leads to a decline in Bitcoin dominance, meaning altcoins could gain value relative to Bitcoin.
Signs of a Weakening Labor Market
Cowen also points to signs of a weakening labor market, such as declining job openings per unemployed worker. He believes this further supports the idea that the Federal Reserve will need to cut interest rates soon.
A Word of Caution
While Cowen’s analysis suggests a potential shift in the crypto market, it’s important to remember that this is just one perspective. Investing in cryptocurrencies carries significant risk, and investors should conduct their own research before making any decisions.
