In the constantly fluctuating world of cryptocurrency, the last few days have seen a devastating crash in Bitcoin prices that has left not only Bitcoin investors licking their wounds but also those who have invested in Altcoins. Altcoins, which are known for their audacious volatility, more so than Bitcoin, suffer noticeably pricier swings. Recent events might have observers hopeful for a recovery, but one particular analyst has a rather ominous forecast for the future of Altcoins.
Benjamin Cowen, a well-versed crypto analyst, recently shocked the crypto community with his projection concerning the direction of Altcoins. According to Cowen, the altcoin market is entering a period of further instability, marked by a downward whirl. Cowen doesn’t mince words – he believes more crashes are undoubtedly on the horizon, with bad news yet to come into fruition.
The analytical conclusions drawn here were composed through a comparative study of Altcoins and Bitcoin, with the Altcoins significantly lagging behind Bitcoin’s performance. Projected rate cuts coupled with history’s demonstration suggest a precipitous drop.
Looking back to 2019’s rate cuts and the subsequent effects on Altcoins provides further insight. They took a nose dive against Bitcoin, with key players experiencing losses of up to 40%. “Could this be a repeat of the past? It implies a potential 40% drop in ALT/BTC pairs in up-coming months,” Cowen speculated.
Cowen is assertive in his belief that these events will unroll regardless of any short-term market recovery. “Temporary counter-trends don’t disprove this theory,” he clarified. Such a dip would intensify an already fierce market trend.
The current valuation of the altcoin market is estimated to be below $1 trillion, however, a 40% drop could mean a staggering descend to around $600 billion.
Bitcoin’s recent slump has significantly hit the cryptocurrency market, and its effects on Altcoins have been considerably harsher. Ethereum seems to be weathering the storm with a decline of less than 4%, but others like Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI) have experienced an average drop of 9% within the last 24 hours.
Meme coins have also been part of this catastrophic downward trend. Leaders of the pack like Dogecoin dipped by 6% to $0.126 while Pepe (PEPE) saw a drop of 7.74% to $0.0000063. Bonk (BONK) posted a 5% decrease, shaving off some of last week’s gains, and Shiba Inu declined by 4.18%.
Even amidst this precarious voyage, certain coins managed to sail the tough waters, with the likes of Optimism (OP) registering a 12% gain. Cosmos (ATOM) scored a 9.8% increase, and Starknet (STRK) managed a 9% climb, making them the lucky few to achieve growth, according to data from Coinmarketcap.
The market cap of Altcoins currently stands at $952 billion, a significant slump from previous figures, adding gravitas to the bleak outlook presented by Cowen.