Widely followed strategist Benjamin Cowen says that Bitcoin (BTC) is acting as a leading indicator for the rest of the crypto market as its dominance level inches up.
Cowen tells his 785,000 YouTube subscribers that the prices of altcoins fluctuate depending on the movement of Bitcoin.
“We’ve seen it play out time and time again where Bitcoin/US dollar [pair] rallies for a while, the rest of the market can rally a little bit beyond it. But if Bitcoin starts to go back the other direction, it’s going to pull everything back down with it.
Remember Bitcoin drives the bus, everything else – they’re just bus riders along for the ride.”
According to the popular analyst, Bitcoin will be leading the rest of the crypto market’s rally over the next couple of years even as some altcoins stagnate during the next bull cycle.
“It’s important for us to recognize that Bitcoin is driving the bus and the altcoin market, they’re the bus riders.
They’re going to go up in a bull market… but it doesn’t necessarily mean they’re driving the bus. They are simply bus riders, they are along for the ride and there’s a good chance that they’re going to miss the ride next time.
In 2024, 2025 there’s a good chance some of the altcoins that you really like, they could miss the bus on the next one.
But guess who’s going to be driving the bus? Guess who’s driving the bus now? Guess who’s going to be driving the bus in 2024 and in 2025 and so on and so forth? It’s Bitcoin. Bitcoin drives the bus, everything else is a bus rider.”
Cowen further says that going forward, Bitcoin’s dominance level is set to rise.
“You look at the Bitcoin dominance, we are currently sitting at just below 49%… Now that we find ourselves at the range high, I know some people are getting nervous.
But I would still argue that this [Bitcoin dominance level] is likely going to break before too long. I don’t think the narrative is there to bring the dominance back down to the lower levels.”
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney