Crypto Analyst Warns of Potential Market Decline Due to Fed Rate Cuts
Crypto analyst Benjamin Cowen is sounding the alarm on the digital asset market, warning that a potential decline could be on the horizon if the Federal Reserve decides to cut rates. In a recent video update to his nearly 800,000 YouTube subscribers, Cowen emphasized the importance of monitoring altcoins against Bitcoin as a key indicator of market health.
Cowen explained, “If alt/Bitcoin pairs break down in April, then I think you could get a summer correction. If alt/Bitcoin pairs do not break down in April then you might not. But it just kind of depends on how well the altcoins hold up because I think the altcoin represents the average consumer, the average retail investor.”
The analyst is closely watching the TOTAL3 versus Bitcoin pair to gauge the overall performance of the altcoin market. TOTAL3, which excludes Bitcoin, Ethereum, and stablecoins, is currently trading at $753.10 billion. Cowen also pointed out that if rate cuts are delayed until July, Bitcoin’s dominance in the market may continue to rise, signaling a bearish trend for altcoins.
Cowen’s analysis suggests that if rate cuts are postponed, altcoins could continue to lose value against Bitcoin, leading to a further decline in the market. Investors are advised to stay informed and exercise caution when making high-risk investments in Bitcoin and other digital assets.
As the market remains uncertain, it is crucial for investors to stay updated on the latest developments and trends in the crypto space. Stay tuned for more updates and insights from Benjamin Cowen and other experts in the field.
