Leading analyst Benjamin Cowen warns of a potential decline in altcoins against Ethereum amid ongoing macroeconomic factors and market dynamics.
Strong Economy Delays Altcoin Recovery
Cowen noted that "the strong economy delays rate cuts and likely delays the end to QT [quantitative tightening]." This suggests that monetary policy will remain restrictive, supporting the idea that altcoin/BTC pairs may continue heading down.
Altcoin Decline Affects Investor Strategies
The potential decline of altcoins might negatively impact investors and traders who rely on multi-crypto portfolios. Ethereum's recent strength against USD contrasts its performance compared to Bitcoin, which may shift market focus towards Bitcoin dominance.
Historical Downtrends for ALT/BTC Pairs
Historically, ALT/BTC pairs have seen temporary relief during summer before declining in the latter part of the year. Cowen points out that, based on past trends, altcoins might not experience significant recovery until late in the year.
Given current macroeconomic conditions and historical patterns, experts advise investors to trade cautiously in altcoins, as their position against Bitcoin and Ethereum may not improve in the upcoming months.
