Popular analyst Benjamin Cowen claims that Bitcoin may outperform altcoins in 2024, citing BTC's market dominance and its correlation with the Dollar Index.
Bitcoin's Market Dominance
Bitcoin continues to hold a significant share of the cryptocurrency market, around 60%. According to the analyst, this figure may keep rising through the end of the year. Cowen noted that the TOTAL3 index, which tracks the market value of all cryptocurrencies except for Bitcoin, Ethereum, and stablecoins, shows a downward trend.
Correlation with Dollar Index
Cowen highlighted that Bitcoin has started to show correlation with the U.S. Dollar Index (DXY), which evaluates the value of the dollar against other major currencies. He reminded that Bitcoin and DXY do not always show negative correlation, and similar instances have occurred in the past. In his opinion, despite the current trends, Bitcoin remains in a strong market position.
Diversification Tips for Investors
Cowen advises investors not to expect a substantial decline in altcoins against Bitcoin. He suggests considering diversification as a reasonable strategy. The analyst also emphasizes that Bitcoin's dominance often increases during the last months of the halving year, which may persist in the future.
Benjamin Cowen's analysis underscores Bitcoin's potential strength in the near future, especially compared to altcoins. He suggests investors consider diversifying their portfolios, given the current market conditions.
