Cryptocurrency strategist Benjamin Cowen recently shared his views with his 876,600 followers on X, emphasizing a notable decline in the altcoin market in relation to Bitcoin. Cowen pointed out that the TOTAL3/BTC ratio is showcasing patterns similar to those observed in 2019, indicating potential long-term implications for altcoin performance.
What Does the TOTAL3/BTC Ratio Indicate?
The TOTAL3 index, which measures the market capitalization of cryptocurrencies excluding Bitcoin, Ethereum, and stablecoins, has reached a critical support level according to Cowen. He suggests that the previous downturn in 2019 led to a subsequent recovery, hinting that the current trend might replicate this historical pattern.
What Should Investors Be Cautious About?
Cowen has issued a warning regarding low-market-cap altcoins, pointing to the OTHERS/BTC chart that has recently breached a significant support threshold. He forecasts a decisive moment for altcoins between December 2024 and early January 2025, particularly cautioning memecoin holders about potential losses against Bitcoin.
- Investors should reconsider their portfolios as altcoins face volatility.
- Bitcoin is likely to outperform altcoins in the current market climate.
- Promoters of low-value memecoins may not prioritize investor interests.
Cowen’s insights highlight the need for investors to remain vigilant in the fluctuating cryptocurrency landscape. His detailed analysis suggests that proactive management of investments could lead to better outcomes, especially for those focused on altcoins.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/how-will-altcoins-fare-against-bitcoin