Renowned market analysts Peter Brandt and Benjamin Cowen have sparked discussions within the cryptocurrency community with their recent insights into the trajectory of Bitcoin dominance.
Brandt's chart, accompanied by the question, "What if there won't be an altcoin season?" highlights his perspective on the potential rise in Bitcoin dominance. Currently standing at 54.27%, Brandt suggests that according to patterns of technical analysis, Bitcoin dominance could surge as high as 66.32%.
This scenario, if realized, could signify a shift in liquidity flows, with Bitcoin attracting the majority of investments, while altcoins struggle to gain traction.
2019 vs. 2024
Adding to the discourse, Cowen provided further analysis, suggesting that historical trends indicate a potential continuation of Bitcoin's dominance. Drawing parallels to previous market cycles, Cowen pointed out that during periods of rate cuts and quantitative easing (QE), Bitcoin dominance has remained elevated.
He argues that the assumption of altcoin dominance rising after Bitcoin's peak may not hold true, citing historical instances where BTC dominance surged even as Bitcoin's price reached its zenith.
The comparison between the current market landscape and that of 2019 is pivotal. Unlike 2019, where new highs were not attained, 2024 has seen Bitcoin reaching unprecedented levels. Cowen's perspective challenges the conventional belief that rotating BTC investments into other altcoins may yield favorable results, suggesting instead that altcoins could continue to lose value against Bitcoin.
All in all, while some investors anticipate opportunities for altcoins to outperform, Brandt and Cowen's perspectives suggest a potentially prolonged period of Bitcoin dominance.
Godfrey Benjamin
Arman Shirinyan
Yuri Molchan
