A widely followed cryptocurrency analyst is issuing an alert, warning traders that altcoins appear poised to continue declining against Bitcoin (BTC).
In a new thread, crypto trader Benjamin Cowen tells his 1 million followers on the social media platform X that US monetary policy will remain tight, suggesting that altcoin pairs versus the top crypto asset by market cap are heading to their range lows.
[adinserter block="1"]“With the economy holding strong, it delays rate cuts and likely delays the end to QT [quantitative tightening]. This suggests that monetary policy will remain restrictive, continuing to support the idea that altcoin/BTC pairs are likely still heading to the range lows.”
According to Cohen, during the last two summers, altcoin pairs versus BTC would rally before dipping during Q4, a move he believes could happen again.
“The last 2 summers ALT/BTC pairs found some brief relief before heading lower into Q4. The larger bounce by ALT/BTC pairs over the last few years did not occur until November.”
TOTAL3, or the entire market cap of all crypto assets excluding Bitcoin and Ethereum (ETH), is sitting at $827.5 billion at time of writing, a 2.3% decrease on the day.
Cowen concludes his analysis by telling traders not to confuse ALT/BTC pairs with USD/BTC pairs, which behave in different ways.
“Does anyone understand the difference between ALT/BTC and ALT/USD or are people just going to keep pretending they are the same thing? This is the difference between ALT/USD and ALT/BTC pairs. ALTs keep bleeding to BTC but have gone up on their USD pairs. Something something Bitcoin Dominance.”
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