As quantitative tightening (QT) policies continue to pressure liquidity across global markets, altcoins may face further downside relative to Bitcoin, according to analyst Benjamin Cowen.
output: As quantitative tightening (QT) policies continue to pressure liquidity across global markets, altcoins may face further downside relative to Bitcoin, according to analyst Benjamin Cowen.
In his latest outlook, Cowen suggests that ALT/BTC pairs are likely to decline from the current 0.34 level to 0.32, with a longer-term target of 0.25.
Cowen’s chart shows the performance of the TOTAL3/BTC pair, which represents the total altcoin market cap (excluding BTC and ETH) versus Bitcoin. The chart shows that the pair has been in a downward trend since early 2022, moving in a descending channel. The chart shows that the pair has found support at the 0.32 and 0.25 levels previously during prior bear market phases.
“Bitcoin dominance could rise to 66% soon,” adds Cowen, signaling capital flowing back into BTC as investors seek safety in the most established crypto asset.
The chart’s long-term structure highlights a market becoming increasingly risk-averse, with capital flowing into Bitcoin during periods of macro uncertainty. This further supports the narrative of BTC outperformance continuing until broader market sentiment shows signs of improvement.
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