Crypto analyst Benjamin Cowen predicts a potential market correction in the second quarter if the Federal Reserve (Fed) begins cutting interest rates.
Altcoin Performance Key Indicator
Cowen believes that if altcoins, or alternative cryptocurrencies, start losing value against Bitcoin (BTC), it could signal the start of a correction due to economic pressures. He’s closely monitoring the TOTAL3 index, which tracks the market capitalization of altcoins excluding Bitcoin, Ethereum, and stablecoins.
Rate Cuts and Bitcoin Dominance
Cowen also notes that if rate cuts are delayed until July, Bitcoin’s dominance (BTC.D) could continue to rise, as it historically has in bearish markets. BTC.D measures Bitcoin’s share of the crypto market.
Altcoins Bleeding
Cowen warns that if rate cuts are delayed further, altcoins could continue to lose value against Bitcoin. He bases this on historical data showing that altcoin dominance declined until rate cuts were implemented.
Caution Advised
Cowen emphasizes that investors should exercise caution and conduct their own research before making any investment decisions. FastPayCrypto does not provide investment advice.
