Extensively adopted crypto analyst Benjamin Cowen is warning that the chances are majorly in favor of Bitcoin (BTC) and crypto markets going for one more leg down earlier than new highs.
In a brand new technique session, Cowen argues that the latest bounce in Bitcoin was most certainly attributable to capital shifting from altcoins and into the safer wager of BTC, moderately than new cash getting into the markets.
Due to this seemingly dynamic, the analyst says that BTC’s latest rally lacks sustainability.
“Regardless of the path of Bitcoin/USD, the dominance in Bitcoin is probably going going to go larger. Sooner or later this 12 months, I believe, we are going to attain a part the place there’s not sufficient liquidity from the altcoin market to maintain Bitcoin’s valuation within the brief time period and we’ll get a secondary scare similar to we did final cycle, and similar to we did the cycle earlier than that.
In the end, what I’m making an attempt to say is that, altcoins, for my part… for the final 12 months and a half and persevering with nonetheless till there’s a extra clear bottoming course of for altcoins of their Bitcoin pairs are simply not well worth the threat as a result of Bitcoin is sucking in all of that extra liquidity from the remainder of the market.”
Cowen says traditionally, Bitcoin sucks liquidity from the altcoin market earlier than making a closing correction that units BTC up for the subsequent bull run.
“Numerous what we’re seeing is liquidity transferring away from the altcoin market and into Bitcoin.
One of many issues that I’ve mentioned earlier than, is that within the pre-halving years, there’s this concept that liquidity flows from the altcoin market again to Bitcoin, and it’s onerous to know at precisely what level liquidity from the altcoin market is now not adequate to prop up the value of Bitcoin/USD, earlier than we usually get the secondary scare, earlier than the subsequent halving and growth.”
I
Do not Miss a Beat – Subscribe to get electronic mail alerts delivered on to your inbox
Test Worth Motion
Comply with us on Twitter, Facebook and Telegram
Surf The Day by day Hodl Combine
Featured Picture: Shutterstock/Pleasure Chakma/Gorev Evgenii