Cryptocurrency analyst Benjamin Cowan believes that bitcoin’s (BTC) historical performance indicates that investing in altcoins could be dangerous.
Cowan reminded his 729,000 YouTube subscribers that if bitcoin falls, as it did in 2018, the prospects for other coins would be dire.
We need to look at what has happened in the past and answer ourselves the question, what would happen if we set a bottom? The altcoin market vs. the bitcoin market changes.
The best way to understand this is to look at bitcoin’s dominance (the ratio between bitcoin’s market capitalization and the rest of the cryptocurrency markets),” the expert noted.
The dominance is at the same level now as it was in June 2018; then the dominance increased dramatically, and what happened in June 2018? That’s where bitcoin hit a lower low.
Cowan believes that the BTC price will mimic the mid-2018 picture that emerged after the skyrocketing price in 2017, when it rose tenfold from about $2,000 to $20,000.
It seems that this thesis does not take into account the significant changes that have taken place in terms of bitcoin adoption. At the moment, several countries have already started to accept cryptocurrency as a legal tender, and many large commercial banks have implemented various services based on BTC.
Now most cryptoanalysts are inclined to believe that the main cryptocurrency will continue to fluctuate in the range of $38,000-41000, demonstrating a strong correlation with the stock market. As inflation picks up, BTC’s position should strengthen quickly.