Fashionable strategist Benjamin Cowen says {that a} reallocation of funds is happening within the crypto asset area with Bitcoin (BTC) rising as the main beneficiary.
Cowen tells his 783,000 YouTube subscribers that Bitcoin dominance is rising as folks dump altcoins in favor of the “blue chip” crypto asset.
In keeping with Cowen, even Ethereum (ETH) additionally loses worth relative to Bitcoin as folks reallocate to the king crypto.
“The altcoin market is very illiquid and individuals are flocking to the relative security of the blue chips that sends the dominance of Bitcoin larger…
The altcoin market bleeds to ETH and Bitcoin. Theoretically, ETH bleeds to Bitcoin as nicely. The dominance goes up and it sends you the Bitcoin/US greenback valuation larger on the expense of the altcoin market liquidity.
In some unspecified time in the future, the altcoin market liquidity can not maintain the Bitcoin worth… as Bitcoin rolls over, the altcoin market will get much more wrecked.”
The favored crypto analyst says that Bitcoin is extra interesting at present than altcoins as a result of prevailing macroeconomic surroundings.
“We basically have this dynamic the place this liquidity from the decrease liquidity property are in search of out the relative security of the upper liquid property, proper.
As a result of in instances of financial uncertainty, which I assume instances are all the time unsure. However in instances like this the place there’s there’s loads of macro stuff to speak about: inverted yield curve, excessive inflation, a extra hawkish Federal Reserve than we’ve seen in 40 years, individuals are going to hunt out the relative security of the blue chips inside that asset class…
Folks that aren’t in crypto with form of scoff on the concept of calling Bitcoin a blue chip nevertheless it’s all about throughout the asset class that you simply’re thinking about what’s the blue chip thought of, proper? And in crypto, it’s Bitcoin.”
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