Altcoin rally won’t happen before February 2025, a popular analyst predicts

Earlier this week, altcoins saw a nice rebound as Bitcoin price plummeted to $58,000, with market dominance BTC down 2%. Popular crypto analyst Benjamin Cowen said that it is too early to assume a manifestation of altcoins move forward, citing a lack of sufficient liquidity to sustain momentum.

Bitcoin’s price dominance will grow further

Analyst Benjamin Cowen has argued that just because altcoins fell harder than Bitcoin during the correction, they will bounce back higher. However, he calls this a false equivalency and adds that Bitcoin’s price dominance has not yet peaked.

Cowen pointed out that historically, the ALT/BTC pairs act as oscillators and, despite recent rallies, still remain above long-term lows.

Courtesy: Benjamin Cowen

He further added that ALT/BTC pairs rebounded from 0.36 to 0.40 last week. Cowen also highlighted that the 0.36 level marks the lowest point in the ALT/BTC pairs in recent years. Therefore, she suggested that the previous prediction of an altcoin season may have been premature.

Read also: Bitcoin Leads Market Recovery, Will Altcoins Follow Suit?

The Altcoin Rally Won’t Come Before February 2025

Cowen also said that in 2019, ALT/BTC pairs crashed shortly before the Federal Reserve rate cuts, rallying briefly from 0.25 to 0.42. This has led many to speculate that BTC dominance has peaked, however, ALT/BTC pairs subsequently fell to 0.25.

Despite continued predictions of Bitcoin’s declining dominance over the years, Cowen notes that it has consistently remained above its bull market support bank showing strong resilience since early 2023.

He also pointed out that historically there have been significant bullish movements in ALT/BTC pairs in the years following the halving. Therefore, there is a higher chance that the altcoin rally will start in 2025 than 2024. Furthermore, as reported by CoinGape, Fed rate cuts

This is unlikely to happen in 2024. Therefore, liquidity is likely to remain tight until then.

Cowen concluded by stating that ALT/BTC pairs are likely to continue bleeding until the Fed announces rate cuts and resumes quantitative easing (QE). While it’s tempting to pre-empt these actions, historical cycles consistently indicate that BTC’s dominance will exceed popular expectations, she said.

Read also: Most searched altcoins on Google; Is it worth buying?

Source