Benjamin Cowen explains why Bitcoin’s dominance in the crypto market has surged to 64% and what it means for altcoins and the broader market. He discusses how the Federal Reserve’s policies are shaping the market and why Bitcoin continues to be the strongest option for investors.
Bitcoin’s Strength Continues
-
Bitcoin now makes up 64% of the total crypto market, its highest level in this cycle.
-
This increase happens when Bitcoin performs better than altcoins, pushing their prices down.
-
Historically, Bitcoin’s dominance keeps rising until the Federal Reserve (the Fed) stops tightening monetary policy (reducing money in the economy).
-
Because of this, Bitcoin is currently the safest investment in crypto, as it holds value better than altcoins.
Altcoins Are Struggling
-
Many altcoins are dropping faster than Bitcoin, with some down over 10% in a single day.
-
Ethereum (ETH) has fallen against Bitcoin to levels not seen since 2020.
-
The total value of altcoins compared to Bitcoin is near its lowest level in years, and history suggests they could fall further.
Why This Is Happening
-
Interest rates and government policy matter for crypto.
-
The Bank of Japan raised interest rates, which triggered a drop in crypto markets—similar to what happened in past cycles.
-
The Federal Reserve is still reducing money in the economy, which hurts riskier investments like altcoins.
-
Until the Fed stops its current policy (known as "quantitative tightening" or QT), Bitcoin is likely to keep outperforming altcoins.
What Should Investors Do According to Benjamin?
-
Bitcoin remains the safer choice in crypto while the Fed continues its current policies.
-
Altcoins might not recover until the Fed changes its approach, which could take months.
-
If history repeats, Bitcoin may keep gaining dominance, and altcoins could keep dropping.
-
Strategy: Focus on Bitcoin, be patient, and wait for better market conditions before taking risks with altcoins. 🚀
