Altcoin Accumulation Should Wait Until Bitcoin Dominance Reaches 60%
• Analyst Benjamin Cowen says the stock market could determine the short-term future of altcoins.
• Cowen suggests that a risk-off stance in stocks may lead to altcoin capitulation.
• He believes altcoin accumulation should not begin until Bitcoin dominance reaches 60%.
Stock Market Could Impact Altcoins
Crypto strategist Benjamin Cowen says the strength of the stock market may determine the short-term future of all crypto assets aside from Bitcoin. In a new strategy session, Cowen tells his 784,000 YouTube subscribers that the risk-off stance that stocks appear to have adopted could negatively impact altcoins if it continues. A risk-off stance indicates that investors are either staying on the sidelines or pulling out their capital.
Altcoin Accumulation Should Wait For Bitcoin Dominance
On when altcoins could turn bullish, Cowen says, “The Bitcoin dominance is now above 50%. And I’ve said many times that altcoin accumulation, in my opinion, not financial advice, should not really start until the Bitcoin dominance is at 60%. We’re not at 60%. Therefore, I don’t think it’s time for the altcoin market.” The Bitcoin ( BTC ) dominance (BTC.D) chart tracks the percentage of the total crypto market cap that belongs to the crypto king.
Bitcoin May Face Secondary Scare Before Halving
Turning to Bitcoin, Cowen says that the flagship crypto asset faces an ominous future ahead of the halving scheduled for April 2024. “I think there’s a good chance that Bitcoin gets that secondary scare. A lot of times Bitcoin gets a secondary scare. And in fact, if you look at every prior high by Bitcoin in the pre-halving year, we have always seen at least a 40% to 50% correction before the halving. Always.“ At time of writing, Bitcoin is trading for $28,587.
Conclusion
In conclusion , analyst Benjamin Cowen has warned about how stock market struggles might affect Altcoin markets and suggested that Altcoin accumulations should wait until bitcoin dominance reach 60% . He also mentioned potential risks before bitcoin’s halvening event scheduled for April 2024 .