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While Bitcoin is strengthening its position as the undisputed leader, Ethereum seems to be faltering. Crypto analyst Benjamin Cowen, followed by hundreds of thousands of investors, predicts a major turn in the relationship between the two market giants.
Bitcoin’s Growing Dominance
According to Cowen, Bitcoin is not ready to give up its place. It observes an upward trend in the dominance of Bitcoin, i.e. the ratio of its market capitalization to the entire crypto market. Currently at 57.64% according to TradingView, this rate could rise to 60%.
This rise means that Bitcoin is attracting more and more investors at the expense of altcoins. Cowen warns that this trend could lead to further declines in the ETH/BTC pair. In other words, Ethereum would still lose ground to Bitcoin.
But why such a rise in Bitcoin? Several factors come into play, with renewed institutional confidence, Bitcoin’s resilience to market fluctuations, and its status as a digital safe harbor all contributing to its dominance.
Ethereum faces imminent capitulation
On the other hand, Ethereum seems to be entering a critical phase. Cowen claims that ETH/BTC is about to hit a cycle bottom. He believes that Ethereum is in the “final stage of capitulation” to Bitcoin. This situation suggests that the price of Ethereum could continue to decline against Bitcoin.
However, all is not doom and gloom for Ethereum. Cowen raises the possibility that ETH will bottom before other altcoins. This means that Ethereum could stabilize and possibly rebound before other cryptocurrencies bottom out.
But he warns that the worst-case scenario would be a temporary recovery followed by a new low in December. Currently, ETH/BTC is trading around 0.04125 BTC, or around $2,597 USD. This situation encourages investors to remain cautious and closely monitor market developments.
Towards a New Equilibrium in the Crypto Market?
Cowen’s prediction sets the stage for much speculation. If Bitcoin continues its momentum, it could further crush the competition and cement its status as a mainstay of the crypto market. Altcoins, and Ethereum in particular, will then have to find new strategies to attract investors.
For traders and cryptocurrency enthusiasts, this information is essential. They allow you to predict market movements and adjust your portfolios accordingly. Cowen’s analysis highlights the importance of staying informed and responsive to the changing dynamics of the crypto world.
In conclusion, the battle between Bitcoin and Ethereum is far from over. If Bitcoin seems without a rival at the moment, the future of cryptocurrencies is still full of uncertainty. Next, discover the four pillars of the next bull run.
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Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.