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.
“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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