A broadly adopted crypto analyst is predicting a meltdown for altcoins as one key metric suggests they’ve a lot additional to drop.
In a brand new video replace, crypto strategist Benjamin Cowen tells his 780,000 subscribers that an altcoin reckoning is on the horizon as a result of the Bitcoin (BTC) dominance chart (BTC.D) nonetheless stays low.
The BTC Dominance chart tracks how a lot of the overall crypto market capitalization belongs to Bitcoin. In response to Cowen, the altcoin market stays a falling knife till BTC.D resolves to the upside.
“One of many issues that [has] saved me actually bearish on the altcoin market is after all the Bitcoin dominance. [It is] nonetheless very low and now at 42%, when you exclude stablecoins, it’s one thing like 48%…
Regardless that the dominance remains to be low, that is what’s saved me from shopping for altcoins this 12 months. That is what has saved me from saying in 2022 ‘Look guys, I do know you just like the shiny altcoin objects in a bull market, however in a bear market, they don’t seem to be your folks, don’t marry an altcoin.’
I acknowledge the dominance remains to be low, however I’ll say this metric is absolutely what’s saved me largely from shopping for altcoins and thus far it’s labored out fairly effectively.”
With altcoins dominating the crypto markets, it means that merchants are nonetheless speculating on digital property aside from Bitcoin.
Utilizing sensible contract platform Cardano (ADA) for instance of a outstanding altcoin that would dip, Cowen notes the crypto asset’s huge value drop during the last 12 months.
“The idiosyncratic danger of a single altcoin is solely not price it, and ADA is now down 92%, however over the past bear market, ADA dropped 98%, virtually 99% from the all-time excessive. It provides you an thought of how unhealthy it acquired
If [ADA} were to go down 98.77%, it would go back down to $0.04.”
Bitcoin is changing hands for $16,524 at time of writing while ADA is moving for $0.245.
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