Benjamin Cowen breaks down Bitcoin dominance - a measure of Bitcoin’s share of the cryptocurrency market - and why it’s a critical tool for investors. Simply put, Bitcoin dominance helps you decide when to focus on Bitcoin versus altcoins. Right now, it’s a hot topic because dominance recently hit 60%, Cowen’s key target for this cycle.
Historically, Bitcoin dominance has often risen sharply after halvings, peaking months later. Cowen predicts this pattern could repeat, with a potential dominance high coming in early 2025. He points out that dominance reached similar levels in past cycles, often surprising investors by climbing when least expected.
What’s driving dominance? Cowen explains it’s tied to broader economic trends, like the Federal Reserve’s monetary policy. With no quantitative easing (QE) yet, Bitcoin may continue to gain market share at the expense of altcoins. This means Bitcoin dominance could rise further, possibly even to mid-60% levels, especially if altcoins remain weak.
Cowen also warns that altcoins typically struggle during this phase of the cycle. However, they tend to rally strongly later, especially after QE or other liquidity boosts return. Until then, he suggests focusing more on Bitcoin and watching the market for signs of change.
For now, Cowen encourages patience. He stresses that Bitcoin dominance often moves unpredictably but remains a reliable signal for shifting your strategy between Bitcoin and altcoins. Understanding these trends, he says, is key to navigating the crypto market effectively.
In simple terms, Cowen sees Bitcoin dominance as a guide for timing your moves in the crypto space. While altcoin fans may need to wait for their moment, the current dominance trend suggests Bitcoin is still the safer bet in the short term.
