News 
Coin Information 
About us 
Amid turbulent market conditions, Benjamin Cowen, CEO of Into The Cryptoverse, advises caution against purchasing altcoins on the dip, pointing to historical patterns that signal further declines could follow.
Market Flashback: Ethereum's Decline Signals Warning for Altcoin Investments
Cowen's cautionary tale begins with a look back at past market tendencies, specifically the unnerving connections to the events 2019. He emphasizes the important point that Ethereum's ratio to Bitcoin faltered shortly before the altcoin market had a 70% fall.
This precedent lays the groundwork for his concerns about the recent drop in Ethereum's ratio to Bitcoin. Furthermore, the ETH/BTC pair only broke through support two days ago, increasing the likelihood of a repeat of the previous slump. Cowen's statement creates a discussion among users.
According to one observer (via CoinGape), many altcoins have already declined by 70%. However, Cowen warned against further fall. He said, "Just because an alt has dropped 70% doesn't mean it can't drop another 70%."
Cowen's research revolves around Bitcoin dominance, which he thinks will reach 60%. Using previous market cycles, he demonstrated 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 stays staunch in his research. He cited Bitcoin's stratospheric rise in the first half of 2019, which anticipated an altcoin correction. He also noted that the spike correlated with macroeconomic factors such as the Federal Reserve's rate decreases and the breakout of gold.
Ethereum's Low Points to Tough Road Ahead, Bitcoin's Dominance Threatens Altcoin Rally
In a recent research, Cowen identified a probable bottom for Ethereum's ratio to Bitcoin. This indicates a prolonged period of market consolidation ahead. He said, "We now officially have a weekly close below the June 2022 low." Cowen said, "Potential bottom of ETH/BTC this summer after being in a bear market since Nov 2021."
Furthermore, he noted, "Timing can change, but the last 2 times this happened, the final capitulation process took 2-3 months." Matrixport, a digital assets platform, agrees that the declining ETH/BTC ratio could lead to a massive collapse in altcoins. Matrixport wrote on X, "Some have argued that we should be on the cusp of an altcoin rally."
They vehemently refuted such claims owing to Bitcoin's growing dominance. They wrote, “Although there have been massive rallies in a handful of meme-coins and altcoins, the broader upside could still be in its infancy according to the #Bitcoin dominance ratio.” Matrixport added that this signals that this bull market is very narrow, with Bitcoin gaining even more market share.
Photo: Microsoft Bing
Comment 0