Benjamin Cowen, a well-known cryptocurrency analyst, predicts that the long-awaited "altcoin reckoning" won't happen until the Ethereum/Bitcoin ratio falls.
This past Sunday, Cowen told his 700k Twitter followers that the ETH/BTC ratio has been seeing lower highs and lower lows ever since the Ethereum merging event took place in September. This price movement suggests that Ethereum's momentum versus Bitcoin is declining.
The ETH BTC ratio's collapse will probably mark the end of the altcoin reckoning. Although I'm aware that some people are holding out hope that this won't happen, Cowen pointed out that since the merger, the ratio has been making lower highs and lower lows.
Cowen also emphasized that Ethereum's dominance has continued to decline. Bitcoin gains supremacy as ETH's dominance decreases. This dynamic suggests that money is shifting from cryptocurrencies to BTC.
Following losses of 2.7% and 4.5% over the previous week, Bitcoin and Ethereum were trading at about $27.1k and $1560, respectively, at the weekly close. Right now, the ETH/BTC ratio is barely below 0.06.
According to Cowen's study, the multi-month altcoin downturn may continue until Ethereum significantly underperforms Bitcoin. Since altcoins frequently follow Ethereum's price changes, a breakdown of ETH/BTC could come before the market's final step of surrender.
Investors eagerly anticipate the culmination of this excruciating adjustment period. According to Cowen's measures, the road may continue to be uneven in the near future as the market looks for a clear bottom. Traders may search for additional accumulation opportunities across altcoins after the ETH/BTC ratio bottoms out.
DISCLAIMER: We don't provide any investment advice.
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