u.today
Renowned crypto influencer and founder of IntoTheCryptoverse Benjamin Cowen has issued a warning to cryptocurrency investors, stating that altcoins could be on the brink of a significant downturn against Bitcoin (BTC). In a recent tweet, Cowen highlighted a concerning resemblance between the current altcoin valuation against BTC and the situation observed in July 2019.
Cowen's tweet showcased a chart illustrating the Total 3 index, encompassing all cryptocurrencies, excluding Bitcoin and Ethereum, in relation to BTC. The chart visibly indicates a critical support level approaching, reminiscent of a similar occurrence in 2019.
In July 2019, altcoins were at the same valuation against #BTC that they are today.
— Benjamin Cowen (@intocryptoverse) July 9, 2023
While timeframes do not have to align perfectly, this chart still suggests that altcoins could collectively drop another 40% against BTC.
It’s called the altcoin reckoning for a reason. pic.twitter.com/6VHghFvbip
Despite the potentially unsettling prognosis, Cowen clarified that occasional bounces in altcoin-to-BTC pairs should not be ruled out. He emphasized the stochastic nature of market movements and asserted that intermittent rebounds should not undermine the overall macro thesis on the altcoin-to-BTC ratio.
Down only?
One of Cowen's followers raised the point that Bitcoin itself experienced a decline during the same period in 2019. The astute analyst acknowledged this fact and reinforced his position by stating that while BTC may face a decline in the latter half of 2023, altcoins could suffer an even more pronounced drop. He stressed that ALT-to-BTC pairs are likely to experience significant downward pressure, irrespective of short-term fluctuations in BTC to USD.
This warning comes at a time when the cryptocurrency market has been characterized by heightened volatility and market participants are keenly observing the movements of both Bitcoin and altcoins.