Benjamin Cowen has issued a warning that the cryptocurrency market is entering a particularly harsh phase. Cowen, who has a following of 768,800 people on social media platform X (formerly known as Twitter), points out that Bitcoin’s dominance in the overall crypto market capitalization is on the rise as investors become more risk-averse.
Cowen has been talking about this specific market phase for some time. He notes that this is the period where Bitcoin’s value may decrease, but its market dominance actually increases. This happens because alternative cryptocurrencies, or altcoins, are experiencing even greater declines in value. Cowen describes this as the most challenging segment of the market cycle.
According to a report by The Daily Hodl, in a YouTube video released yesterday, Cowen employs Fibonacci retracement levels to predict that Bitcoin’s market dominance will likely reach a peak at around 60%, similar to previous cycles. While he remains committed to the 60% figure, Cowen acknowledges that the actual percentage could vary slightly—ranging from 59% to 63%. He also addresses questions about the impact of stablecoins on Bitcoin’s dominance, arguing that the presence of stablecoins in the market is the reason why Bitcoin’s dominance doesn’t surge to 65% or 70%.
Turning his attention to Ethereum, Cowen predicts that the ETH/BTC ratio will gradually decline to approximately 0.037, which equates to about $1,016 at the time of the article. Cowen observes that the decline in the ETH/BTC ratio has been slower than he initially expected but confirms that the trend has indeed been downward for an extended period.
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