Caution Advised: Altcoin Investments in Turbulent Market Conditions
Amid Turbulent Market Conditions, CEO Benjamin Cowen Advises Caution Against Purchasing Altcoins on the Dip
As the cryptocurrency market experiences turbulent conditions, Benjamin Cowen, the CEO of Into The Cryptoverse, is advising caution against purchasing altcoins on the dip. Cowen points to historical patterns that signal further declines could follow, particularly referencing Ethereum’s decline as a warning for altcoin investments.
Cowen’s cautionary tale begins with a look back at past market tendencies, specifically drawing parallels to the events of 2019. He highlights the important point that Ethereum’s ratio to Bitcoin faltered shortly before the altcoin market experienced a 70% fall.
This precedent lays the groundwork for his concerns about the recent drop in Ethereum’s ratio to Bitcoin. The ETH/BTC pair only broke through support two days ago, increasing the likelihood of a repeat of the previous slump. Cowen’s statement has sparked a discussion among users in the cryptocurrency community.
According to one observer via CoinGape, many altcoins have already declined by 70%. However, Cowen warns against further falls, stating, “Just because an alt has dropped 70% doesn’t mean it can’t drop another 70%.”
Cowen’s research focuses on Bitcoin dominance, which he believes will reach 60%. By analyzing previous market cycles, he demonstrates the inverse relationship between Bitcoin’s supremacy and the fortunes of altcoins. As a result, he predicts an upcoming period of volatility in the cryptocurrency industry.
Despite some users’ claims about the current bull market, Cowen remains steadfast in his research. He cites Bitcoin’s significant rise in the first half of 2019, which foreshadowed an altcoin correction. He also notes that this spike correlated with macroeconomic factors such as the Federal Reserve’s rate decreases and the breakout of gold.
In a recent research update, Cowen identifies a probable bottom for Ethereum’s ratio to Bitcoin, indicating a tough road ahead with a prolonged period of market consolidation. He notes, “We now officially have a weekly close below the June 2022 low,” and predicts a potential bottom for ETH/BTC this summer after being in a bear market since November 2021.
Furthermore, Cowen warns that the declining ETH/BTC ratio could lead to a massive collapse in altcoins. Matrixport, a digital assets platform, also agrees with this assessment, stating that Bitcoin’s growing dominance threatens an altcoin rally.
As the cryptocurrency market continues to navigate through uncertain waters, Cowen’s advice serves as a reminder for investors to exercise caution and carefully consider their investment decisions in the face of market volatility.
