No Altseason Yet: Bitcoin Remains the Safer Bet, Analyst Warns

Bitcoin looks like it will keep outperforming altcoins in the near future, according to crypto analyst Benjamin Cowen.

Crypto analyst Benjamin Cowen is advising investors to keep their powder dry and avoid getting too excited about an "altcoin season" just yet.

In his latest YouTube analysis, Cowen highlighted a key sentiment indicator — the social risk metric — which shows that interest in altcoins is fading fast.

"If you look at Ethereum, it tends to be a good barometer for where things are going in the altcoin market. When people get weaker on ETH, they get weaker on crypto in general, and when people get weaker on crypto, they usually start rotating out of altcoins and into Bitcoin."

Recent drops in Ethereum's price have coincided with a sharp decline in social media engagement around crypto, reinforcing his view that altcoins will likely continue underperforming.

However, Cowen notes that the situation could eventually shift. He believes a loosening of US monetary policy could breathe new life into altcoins.

"We need to see more economic pain get baked into the market before we start to see a response out of policy-makers in terms of easing financial conditions."

Until then, he expects Bitcoin to stay dominant as investors shy away from higher-risk bets.

"We're going to see Bitcoin continue to outperform as long as people are skittish and trying to avoid risk. So, we're not quite in altcoin season yet. I think we need to see some more economic pain get baked into the market before we start to see a response out of policy-makers in terms of easing financial conditions."

Cowen also pointed out that while many traders are eager for an "altcoin season," the broader environment isn't supportive yet.

"I think a lot of traders are hoping for a rapid rebound in the altcoin market, but we're not going to see that without some significant changes in economic policy. For now, the safest play is to stick with Bitcoin as the market weathers ongoing volatility."output: No Altseason Yet: Bitcoin Remains the Safer Bet, Analyst Warns

Bitcoin looks set to keep outperforming altcoins in the near future, according to crypto analyst Benjamin Cowen.

In his latest YouTube analysis, Cowen pointed to a key sentiment indicator — the social risk metric — which shows that interest in altcoins is fading fast.

"If you look at Ethereum, it tends to be a good barometer for where things are going in the altcoin market. When people get weaker on ETH, they get weaker on crypto in general, and when people get weaker on crypto, they usually start rotating out of altcoins and into Bitcoin."

Recent drops in Ethereum's price have coincided with a sharp decline in social media engagement around crypto, reinforcing his view that altcoins will likely continue underperforming.

However, Cowen notes that the situation could eventually shift. He believes a loosening of US monetary policy could breathe new life into altcoins.

"We need to see more economic pain get baked into the market before we start to see a response out of policy-makers in terms of easing financial conditions. Until then, we're going to see Bitcoin continue to outperform as long as people are skittish and trying to avoid risk. So, we're not quite in altcoin season yet. I think we need to see some more economic pain get baked into the market before we start to see a response out of policy-makers in terms of easing financial conditions. And for now, the safest play is to stick with Bitcoin as the market weathers ongoing volatility."