The renowned technical analysis expert, Benjamin Cowen, shared his insights on the much-discussed “flippening” narrative – the idea that Ethereum (ETH) might one day surpass Bitcoin (BTC) in market capitalization.
The narrative has gained traction, especially after the Ethereum network underwent “the merge.” However, Cowen raises a pertinent question: If the merge was indeed a game-changing event that would propel ETH to flip BTC, why has the ETH/BTC ratio been showing a trend of lower highs and lower lows since the merge?
In the world of trading and investment, narratives can be enticing and can drive short-term sentiment. But as the top-notch analyst Cowen rightly points out, “Narratives are fun. Price action is king.” This statement underscores the importance of relying on actual market behavior rather than getting swayed by popular narratives.
While Benjamin Cowen’s tweet highlights the current market dynamics, it doesn’t conclusively state that ETH will never flip BTC. The crypto market is known for its volatility and unpredictability. However, as of now, based on the price action, BTC continues to hold its dominant position.
In another tweet, the well-known trader hinted at the possibility of Bitcoin’s market dominance reaching 51% soon. This suggests that despite the rise of various altcoins, BTC remains a significant player in the crypto space, reinforcing its position as the leading cryptocurrency. The cryptocurrency market currently boasts a total market capitalization of $1.19 trillion.
Of this vast sum, Bitcoin, the pioneering and most dominant cryptocurrency, holds a market cap of approximately $581.03 billion. This indicates that Bitcoin alone accounts for nearly half of the entire crypto market’s value, underscoring its significant influence and leadership in the digital currency space.
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Show more +Benjamin Cowen also offers a word of caution to altcoin enthusiasts. He points out the fallacy in celebrating an altcoin’s 10% rise over a week, especially if it has plummeted 90% against BTC over the last 18 months. This perspective is a reminder that while short-term gains can be exciting, it’s essential to consider the broader picture, especially when comparing altcoins to the crypto king, BTC.
While narratives can be captivating, it’s the price action that truly reflects the market’s sentiment, is the main takeaway from Benjamin’s recent analyses.
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