Altcoins
Peter Brandt and Benjamin Cowen warn of the rise of Bitcoin dominance
Gamza Khanzadaev
Altcoin season considered to be canceled due to Bitcoin dominance concerns, warns Peter Brandt
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Renowned market analysts Pierre Brandt and Benjamin Cowen have sparked discussions within the cryptocurrency community with their recent perspectives on Bitcoin’s trajectory of dominance.
Brandt’s chart, accompanied by the question “What if there was no altcoin season?” » underlines his view on the potential increase Bitcoin dominance. Currently at 54.27%, Brandt suggests that based on technical analysis models, Bitcoin dominance could reach 66.32%.
This scenario, if realized, could mean a shift in liquidity flows, with Bitcoin attracting the majority of investments, while altcoins struggle to gain traction.
2019 versus 2024
Complementing the speech, Cowen provided further analysis, suggesting that historical trends indicate a potential continuation of Bitcoin’s dominance. Drawing parallels with previous market cycles, Cowen pointed out that during periods of rate cuts and quantitative easing (QE), Bitcoin dominance remained high.
He argues that the hypothesis that altcoin dominance would increase after Bitcoin peaks may not be true, citing historical cases where BTC dominance increased even as The price of Bitcoin reached its peak.
BTC to USD by CoinMarketCap
The comparison between the current market landscape and that of 2019 is crucial. Unlike 2019, where new highs were not reached, 2024 saw Bitcoin reach unprecedented levels. Cowen’s view challenges the conventional wisdom that rotating BTC investments into other altcoins can yield favorable results, instead suggesting that altcoins may continue to lose value relative to Bitcoin.
Overall, while some investors anticipate outperformance opportunities for altcoins, Brandt and Cowen’s outlook suggests a potentially extended period of Bitcoin dominance.
About the Author
Gamza Khanzadaev
Financial analyst, trader and crypto enthusiast.
Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master’s program in banking and asset management.
He wants to participate in covering economic and financial technology topics, as well as making more people aware of cryptocurrencies and blockchain.