3 - 4 minute read
Bitcoin has been driving the current rally in cryptocurrency prices, indicating the dominance of Bitcoin in the crypto market. This is according to Benjamin Cowen, who is a top cryptocurrency analyst with a huge following on YouTube.
Cowen argues that Bitcoin is acting as a leading indicator for the rest of the cryptocurrency market. The prices of altcoins are fluctuating depending on the movement of Bitcoin. Cowen stresses the importance of recognizing that Bitcoin is driving the bus while everything else, including altcoins, are just bus riders along for the ride. This means that in the next couple of years, Bitcoin will lead the rally in the crypto market, while some altcoins may stagnate during the next bull cycle.
Cowen predicts that by 2024-2025, some of the altcoins may miss the bus on the next one, but Bitcoin will still be driving the bus. He attributes this to the fact that Bitcoin’s dominance level is set to rise, which is currently just below 49%. Cowen believes that the Bitcoin dominance level is likely to break before too long, meaning that the narrative is not there to bring the dominance back down to lower levels.
Cowen’s analysis has significant implications for the cryptocurrency market, particularly for traders. The fact that Bitcoin is driving the bus means that the value of other cryptocurrencies is largely dependent on the movement of Bitcoin. Traders may choose to focus on Bitcoin rather than other altcoins to maximize their profits.
Based on Cowen’s analysis, traders should keep a close eye on the movement of Bitcoin as it is a leading indicator for the rest of the crypto market. Traders should also consider the potential impact of the rising dominance level of Bitcoin on the value of other cryptocurrencies. There are possible opportunities for traders to buy Bitcoin now while its dominance level is still below 49%, as it is expected to rise soon.
The Bottom Line
Bitcoin continues to dominate the crypto market as a leading indicator for the prices of altcoins. As Bitcoin’s dominance level is set to rise, traders may want to focus on Bitcoin to maximize their profits. While some altcoins may miss the bus in the next couple of years, Bitcoin will still be driving the bus, making it a valuable asset for traders to consider.