Benjamin Cowen discusses Bitcoin’s recent market drop and the broader implications for altcoins and quantitative tightening (QT). He explains how Bitcoin dominance is rising, altcoins are bleeding, and why the Federal Reserve’s next move is crucial.
Bitcoin Outlook
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Bitcoin’s decline was expected as it continues to follow historical cycles.
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Bitcoin dominance has surged past 63%, reinforcing the trend of altcoins underperforming.
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The next key event is the Federal Reserve ending QT, which Cowen expects could happen by March.
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Until QT ends, Bitcoin dominance can continue rising, meaning altcoins will likely keep struggling.
Altcoins Are Bleeding
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Altcoins are getting crushed against Bitcoin, with many down over 10% in a single day.
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Ethereum has officially “gone home,” touching its lower logarithmic regression trend line, which historically precedes long-term recoveries.
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Altcoin dominance has dropped to new lows, following the same pattern as past cycles.
Macro Trends and Market Impact
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The Bank of Japan’s recent rate hike triggered a market drop, similar to past instances where Ethereum capitulated a month after rate increases.
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Stock markets are also struggling, with the Nasdaq and Russell 2000 both down about 3%.
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Cowen predicts the market will force the Fed to pivot by March, which could lead to a major recovery.
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If QT continues, altcoins will keep underperforming Bitcoin, possibly hitting new cycle lows.
Final Thoughts
Cowen believes Bitcoin will remain the safest bet until the Fed pivots. Altcoins may see relief only after QT ends, which could happen in the next few months. If Bitcoin follows previous cycles, it may test lower levels before rebounding strongly.
His advice: Be patient, avoid unnecessary risk, and focus on Bitcoin until macro conditions improve. 🚀