Benjamin Cowen, a well-known market expert, has forecasted that Cardano (ADA) is poised to decline in value against Bitcoin (BTC) before the end of 2024. His insights, based on historical price patterns, were shared recently on the social media platform X.
What Historical Trends Reveal?
Cowen highlighted that the ADA/BTC trading pair has historically fluctuated between 400 and 4,000 satoshis and often sees its most significant declines as halving years draw to a close. This trend appears to align with the four-year cycle governing the ADA/BTC ratio.
Could This Affect the Altcoin Market?
Cowen’s analysis extends to the broader altcoin market as well. He observed that the total market capitalization of cryptocurrencies, excluding Bitcoin, is experiencing significant challenges, suggesting that altcoins, including Cardano, may face further weakening in the coming months.
Key points from Cowen’s predictions include:
- Expecting a decline in the ADA/BTC ratio by year-end, targeting 470 satoshis.
- Anticipating a potential recovery for Cardano starting in 2025.
- Noting current economic factors such as continued quantitative tightening and rising yields that could suppress asset prices.
According to Cowen, while Bitcoin’s dominance is likely to rise as the year concludes, Cardano may ultimately show signs of resurgence in 2025. His analysis, grounded in both economic indicators and historical trends, serves as a crucial reference point for those monitoring the cryptocurrency landscape.