Analyst and trader Benjamin Cowen shares insights on the current state of Bitcoin and altcoins, focusing on the influence of U.S. monetary policy.
Pressure on Altcoin/Bitcoin Pairs
In his recent strategy session, Cowen highlighted the overall trend in the altcoin market. According to Total3 data, which measures the total market cap of cryptocurrencies excluding Ethereum and Bitcoin, the altcoin/Bitcoin pairs are currently moving sideways. However, Cowen warns that this stagnation could signal a potential downward trend. He stated, "Altcoin/Bitcoin pairs are currently stable. Similar declining trends are expected in the coming weeks."
Monetary Tightening Benefits Bitcoin
According to Cowen, the primary reason Bitcoin remains stronger than altcoins is the monetary tightening policy implemented by the U.S. Federal Reserve. By keeping interest rates high and continuing quantitative tightening, investors are directed towards limited-supply assets like Bitcoin. Cowen expressed, "The fundamental assumption is that Bitcoin’s dominance will increase until quantitative tightening ends."
Bitcoin Dominance Could Reach New Peaks
Cowen’s analyses reveal that Bitcoin will stand out not only in terms of price but also in market dominance. At the time of writing, Bitcoin is trading at approximately $84,270, continuing to maintain strength against other major cryptocurrencies. The rising dominance rate of Bitcoin indicates ongoing safe-haven searches by investors, distancing themselves from risky altcoin investments.
Investments in Bitcoin continue to be preferred, especially among institutional investors, under the current economic uncertainty. Bitcoin’s limited supply structure and its historical resilience during crises highlight its advantages.
