In a new video update, the trader details how BTC’s dominance level, or the total percentage of the crypto market cap that is made up of Bitcoin, nosedived at the end of 2020 from about 73% to 41.18% at time of writing.
Cowen says that Ethereum’s upcoming switch from a proof-of-work network to a proof-of-stake one could have investors reallocating their funds to the leading digital asset, suggesting that ETH’s upgrade could be a sell-on-news event.
“When will [BTC’s dominance level] turn around? When will it go back the other way? If I were to just speculate, one of the things I’d have to think about is what are some major events coming up that at which point the narrative could shift and maybe there could be various re-weightings of portfolios?
I think one of the biggest things is obviously the Merge for Ethereum. There’s certainly a lot of momentum behind that right now… and that theoretically is coming up in September, where it transitions from proof-of-work to proof-of-stake…
I wouldn’t be that surprised to see [Bitcoin’s] dominance start to turn back around maybe in September if it hasn’t already by then, and the reason is because again you’re going into this major event for Ethereum, and it seems like a reasonable place where people might reallocate some of their portfolios.”
However, Cowen notes that it’s possible the Merge could be delayed as it has been many times before throughout the years.
Bitcoin is changing hands at $22,947 at time of writing, a 1.8% gain on the day while ETH is moving for $1,689, up 5% in the last 24 hours.
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