• Bitcoin’s value has surged and stayed stable, but altcoins have not followed suit.
• According to analyst Benjamin Cowen, Bitcoin usually rises for half the year before the halving event and then goes down for the other half.
• The total market cap of crypto is the same as it was in August 2022, but since then Bitcoin has gone up while most altcoins have gone down.
Market Dominance Surges
Bitcoin’s value has surged over the past few months and stayed relatively stable. This is usually a good sign for altcoins, yet they haven’t responded in kind. Popular analyst Benjamin Cowen recently appeared on Wolf of All Streets podcast to discuss this issue and share his insights on how it could affect the crypto market.
Cowen pointed out that historically, Bitcoin tends to go up for half a year before its halving event and then go down for the other half. This year appears to be following that pattern with mostly green months in the first half of 2023 leading up to the halving event. He warned that even though Bitcoin seems positive now, there may be a bearish period after the halving takes place.
Market Cap Analysis
The expert also noted an interesting detail regarding cryptocurrency market cap – it remains at around the same level as it was in August 2022 despite Bitcoins surge since then. In fact, most all coins are down since then, indicating that capital is being shifted from altcoins into Bitcoin instead of increasing overall market liquidity.
Cowen believes that regulatory clarity could have a huge impact on cryptocurrencies‘ future performance – both positively or negatively depending on how governments decide to handle it going forward. He believes providing clear rules will allow more people to invest without fear of regulatory repercussions which could lead to increased liquidity and better returns for investors in both Bitcoin and altcoins alike.
Cryptocurrency markets remain unpredictable due to their volatile nature but there are certain trends that analysts can look out for in order to get a better understanding of where they might be headed next. Analysts like Cowen believe that clear regulation will benefit all involved as well as provide much needed stability within these markets which could ultimately lead to increased investment opportunities across all coins – not just Bitcoin but also altcoins too!