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Renowned crypto influencer and founder of IntoTheCryptoverse Benjamin Cowen has issued a warning to cryptocurrency investors, stating that altcoins could be on the brink of a significant downturn against Bitcoin (BTC). In a recent tweet, Cowen highlighted a concerning resemblance between the current altcoin valuation against BTC and the situation observed in July 2019.
Gamza KhanzadaevCowen's tweet showcased a chart illustrating the Total 3 index, encompassing all cryptocurrencies, excluding Bitcoin and Ethereum, in relation to BTC. The chart visibly indicates a critical support level approaching, reminiscent of a similar occurrence in 2019.
In July 2019, altcoins were at the same valuation against #BTC that they are today.
— Benjamin Cowen (@intocryptoverse) July 9, 2023
While timeframes do not have to align perfectly, this chart still suggests that altcoins could collectively drop another 40% against BTC.
It’s called the altcoin reckoning for a reason. pic.twitter.com/6VHghFvbip
Despite the potentially unsettling prognosis, Cowen clarified that occasional bounces in altcoin-to-BTC pairs should not be ruled out. He emphasized the stochastic nature of market movements and asserted that intermittent rebounds should not undermine the overall macro thesis on the altcoin-to-BTC ratio.
Down only?
One of Cowen's followers raised the point that Bitcoin itself experienced a decline during the same period in 2019. The astute analyst acknowledged this fact and reinforced his position by stating that while BTC may face a decline in the latter half of 2023, altcoins could suffer an even more pronounced drop. He stressed that ALT-to-BTC pairs are likely to experience significant downward pressure, irrespective of short-term fluctuations in BTC to USD.
Tomiwabold OlajideThis warning comes at a time when the cryptocurrency market has been characterized by heightened volatility and market participants are keenly observing the movements of both Bitcoin and altcoins.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov