Renowned cryptocurrency strategist Benjamin Cowen has projected that Bitcoin is likely to outshine altcoins throughout 2024. In a recent update to his 884,400 followers on the social media platform X, Cowen noted Bitcoin’s market dominance, currently around 60%, indicates a greater risk for altcoins in terms of value depreciation.
Cowen explained that Bitcoin’s dominance, represented by the ratio of its market value to the overall cryptocurrency market, currently stands at 61%. He anticipates this upward trend to persist as the year progresses.
How Does Bitcoin Relate to the U.S. Dollar Index?
He pointed out that Bitcoin has begun to correlate with the U.S. Dollar Index (DXY), which gauges the dollar’s strength versus other currencies. Cowen emphasized that this relationship is not consistently negative, citing previous instances where both metrics moved similarly.
Key takeaways from Cowen’s insights include:
– Bitcoin’s market value is significantly higher than that of altcoins.
– A potential decline in altcoins against Bitcoin is likely.
– Bitcoin’s dominance typically increases in the final quarter of halving years.
– Monitoring the evolving crypto market landscape is essential as 2025 approaches.
Bitcoin’s current trading value is $90,385, reflecting a 2.5% increase over the past day. Cowen believes that while Bitcoin’s market strength might wane by 2025, it is well-positioned for the coming months, and diversification strategies may be wise for crypto enthusiasts looking to navigate this volatile landscape.