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- 1 Benjamin Cowen is an expert whose insights are followed by many crypto investors.
- 2 He recently predicted Bitcoin’s price is going to plummet in the remaining months of this year.
- 3 Cowen says that it has happened in past years and it’s going to impact altcoin markets badly.
Benjamin Cowen is a renowned name in the crypto space. He is a well-versed crypto analyst who provides valuable insights about the industry. His shrewd suggestions have helped many investors pocket profits and avert risks. He has also helped many businesses in establishing themselves in this domain. That’s why, crypto users also take his predictions very seriously.
Benjamin’s Prediction About DeFi and Altcoins
Benjamin’s foretelling comes at a time when people are bracing up for an upheaval in DeFi and altcoins. In a recent interview, he said that both the decentralized solutions are likely to see a downfall by the end of this year. He attributed it to the blockchain which would also nosedive. According to him, it will defy all progress it made in the first half of the year.
To corroborate his analysis, he took reference to the history of Bitcoin. He said that BTC takes an upward drive in the first half of the pre-halving years. On the other hand, it declines in the second half making the investors suffer. He even pointed out the years in which it happens. Evidently, it took place in 2011, 2015, and 2019. The years got divided into two-colored charts, the first six green months, and the remaining six red months.
He said that history is now repeating as it did in the past few years. So far, the market has seen a bullish trend of the green color. The same thing happened in the said years before. Cowen also points out that altcoins have been struggling due to Bitcoin already. The original crypto’s market capitalization has increased exponentially.
Due to this, altcoins are losing their liquidity. He said Bitcoin’s gaining dominance is eating into altcoins prices. When the BTC repeats its cycle, the latter will suffer more.
Factors That Impact the Price of Altcoins
These are the few things that impact the price fluctuations of altcoins.
Supply & Demand- Supply and demand is the strongest factor behind price fluctuations. In this context, when BTC’s demand grows, it directly impacts that of altcoins. It applies to all types of cryptocurrencies.
Fundamentals: These include factors like profit margins, quarterly performances, and growth prospects. However, there are some external things like recessions or pandemics that could impact the business.
Macro Factors: Macro factors are mostly the cascading effects of a major event that includes the collapse of FTX which caused scalable losses to many enterprises. Occasions like these expose small or emerging companies to risk.
Sentiment: Market sentiment drives the prices crazily. Things such as rumors and news can change the viewpoint of investors. Consequently, the traders change their strategy of buying/selling.
Technical Drivers: These include charts patterns and indicators that reflect how markets behave. Mostly they react to already what’s happening in the market. But traders use them to anticipate the next move in the market.
Many crypto analysts are buying Cowen’s argument. They are of the view that BTC and altcoins will take a downward move. However, markets are full of surprises and it’s best to wait and see how it unfolds.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
