Popular analyst Benjamin Cowen recently appeared on the Wolf of All Streets podcast, where he spoke about Bitcoin and altcoins. He said that usually when Bitcoin’s value surges and then stays stable, altcoins take off. Strangely, this time, that hasn’t occurred.
Despite Bitcoin’s rise and fall, altcoins haven’t followed suit. Normally, when Bitcoin’s value goes up and then levels off, it’s a good sign for altcoins, but that hasn’t been the case recently.
“The altcoin market has been struggling all year. I mean, it really has, and Bitcoin has significantly outperformed. But the issue is that alts have struggled with Bitcoin doubling in value. So, what happens to alts if Bitcoin retraces any of that move? I think that is the bigger issue here,” he said.
Cowen talked about how Bitcoin usually behaves in the first half of the year before the halving event. In years before halvings, like 2011, 2015, and 2019, Bitcoin tends to go up for half the year and then down for the other half, with around six months in each color.
This year, 2023, has followed a similar trend with mostly green months in the first half. He noted that even though the beginning of halving years seems positive, the months that follow could turn bearish.
The expert also highlighted an intriguing detail with regards to the market cap. He said, “Look at the total market cap of crypto, it’s basically the same spot ‘look at this August 15th of 2022, same market cap as it is today but what happened since then Bitcoins up since August of 2022 most all coins are down so it’s basically just been a rotation of capital.’”
The experts also discussed the potential impact of regulatory clarity on market sentiment and investor behavior. They noted that clear regulatory guidelines tend to attract more investment and support positive market sentiment. Conversely, any negative news or regulatory uncertainty can lead to investors withdrawing their funds.
Source: https://coinpedia.org/bitcoin/bitcoin-market-dominance-surges-altcoins-seek-a-breakout/