Benjamin Cowen explains that the Fed’s recent rate cut has created mixed signals for crypto. While the 25-point cut was expected, the Fed is still pulling money out of the economy by selling off bonds - a process known as quantitative tightening (QT). Cowen believes this will keep Bitcoin strong compared to altcoins.
-
Bitcoin has now hit Cowen’s target dominance level of 60%, which he’s happy with. But because the Fed is still reducing money in the system, Bitcoin’s dominance could rise even more.
-
Cowen notes that Bitcoin usually thrives in this environment, while altcoins struggle to keep up.
For those hoping for an altcoin season, Cowen suggests patience. He doesn’t expect altcoins to really outperform until the Fed switches back to pumping money into the economy, possibly in 2025. Until then, he’s hedging a bit with Ethereum but keeping his main focus on Bitcoin.
