Analyst Benjamin Cowen Issues Altcoin Warning, Says Regulatory Uncertainty Means Bitcoin Steals the Show
A widely followed crypto analyst is issuing a warning to altcoin investors, saying that regulatory uncertainty means that Bitcoin (BTC) will likely dominate other digital assets.
In a new video update, crypto analyst Benjamin Cowen tells his 785,000 YouTube subscribers the king crypto will beat out other digital assets even though BTC’s rally in 2021 was followed by a massive altcoin surge.
“I do think people should be somewhat careful in assuming that the altcoin market would follow Bitcoin just because it happened in 2021.
There’s actually plenty of examples that you can look to to show that the altcoin market does not always follow Bitcoin after these rallies, and therefore it’s likely going to continue to lead to the devaluation of the altcoin market on their Bitcoin pairs.”
Cowen is also keeping a close watch on the Bitcoin Dominance index (BTC.D), which tracks how much of the total crypto market capitalization belongs to the king crypto.
According to Cowen, BTC.D will likely take out its critical resistance area citing uncertainty in the altcoin markets due regulatory pressure. A bullish BTC.D chart suggests that Bitcoin is rising faster in value than altcoins or altcoins are losing value faster than BTC.
“I know there’s a lot of people that assume that [BTC.D] is going to come back down this way, but I do think the odds are much more likely that this is going to break through.
I think the relative uncertainty of regulation risk with regards to the altcoin market, not knowing if they are securities or not, and I think that the recession risk that again has not fully materialized but could materialize later this year [or] early next year, I think that altcoins will not provide refuge during that time, but Bitcoin could provide relative refuge.”
Bitcoin is trading for $27,594 at time of writing.
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