Renowned analyst Benjamin Cowen argues that many altcoins may not survive the year-long crypto winter. In a new YouTube video, Cowen forecasts that altcoins will plateau.
Cowen expects another difficult period for smaller altcoins in the months ahead, right into 2024. He expects altcoins to undergo a depression before a resurgence in 2025.
Will Altcoins Experience a Rebirth?
Some altcoins will reveal their true value in the intervening period, while others will disappear or not record any all-time high in the next bull market. He argues this trend has occurred in previous cycles.
Read more: What Are Altcoins? A Guide to Alternative Cryptocurrencies.
All cryptocurrencies may not enjoy an all-time high during bull markets as Bitcoin (BTC) does, he argues.
Fed Will Be Biggest Altcoin Influencer
The US Federal Reserve (Fed) has played a key role in Cowen’s analysis. According to the analyst, the Fed’s monetary policy profoundly impacts the cyclic behavior of altcoins.
“I think this is the depression phase. I do think it’s coming. And then I think what comes after it is the altcoin Renaissance, but that doesn’t come until the Fed pivots.”
The analyst does not believe the US central bank will alter its current course.
“There’s a chance that they pivot this year, but I just don’t think they’re going to. If they do pivot this year, that doesn’t mean the altcoin market is going to immediately go back up.”
The only reason the Fed may alter its policy is if there are problems with the US economy. The fight to tame inflation is not over because prices keep rising, he adds.
Read more: How to Protect Yourself From Inflation Using Cryptocurrency.
Any change in the Fed policy will be accompanied by a recession, which is generally bearish for altcoins or Bitcoin.
Do you have something to say about altcoins potentially disappearing from the market, how the US economy will influence their prices, or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
Source: https://beincrypto.com/analyst-altcoins-disappear-from-market/