Why Bitcoin is Poised to Reign Supreme Over Ethereum Once Again – Top Analyst

In a new video, popular crypto analyst Benjamin Cowen shared his insights on the current dynamics between Bitcoin and altcoins with his 787,000 subscribers. He believes several factors point to Bitcoin dominance increasing in the near future.

Cowen highlighted that both Bitcoin and Ethereum dominance charts are showing lower highs recently: “If you were to look at the Ethereum dominance, what do you see here? It’s the same thing with Bitcoin dominance.”

This suggests the tide may be shifting away from altcoins and back towards Bitcoin as the crypto market leader. As Cowen put it: “The Ethereum Bitcoin evaluation has been breaking down.”

One major factor is the Federal Reserve’s hawkish monetary policy. Cowen noted: “The FED has been clear that they have no interest in lowering rates and going back to QE until they’ve successfully squashed inflation.” This is sucking liquidity out of the crypto markets.

Cowen also pointed to how last summer, Ethereum’s dominance dropped to just 14% as an example of how altcoins can dramatically lose market share. He believes liquidity is flowing from higher risk assets like altcoins into lower risk ones like Bitcoin: “I think liquidity is what’s driving this market, and I think liquidity is leaving higher risk assets and going to lower risk assets.”

In summary, Cowen sees Bitcoin as a safer bet in the current environment: “Bitcoin gives you exposure to the upside while minimizing your downside risk.” With Bitcoin dominance rising, he seems cautious on altcoins until there are clearer signs of a trend reversal.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

CaptainAltcoin
Logo