Standard strategist Benjamin Cowen says {that a} reallocation of funds is happening within the crypto asset house with Bitcoin (BTC) rising as the key beneficiary.
Cowen tells his 783,000 YouTube subscribers that Bitcoin dominance is rising as individuals dump altcoins in favor of the “blue chip” crypto asset.
In accordance with Cowen, even Ethereum (ETH) additionally loses worth relative to Bitcoin as individuals 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 greater…
The altcoin market bleeds to ETH and Bitcoin. Theoretically, ETH bleeds to Bitcoin as effectively. The dominance goes up and it sends you the Bitcoin/US greenback valuation greater on the expense of the altcoin market liquidity.
Sooner or later, the altcoin market liquidity can not maintain the Bitcoin value… as Bitcoin rolls over, the altcoin market will get much more wrecked.”
The favored crypto analyst says that Bitcoin is extra interesting at the moment than altcoins as a result of prevailing macroeconomic setting.
“We primarily have this dynamic the place this liquidity from the decrease liquidity property are looking for out the relative security of the upper liquid property, proper.
As a result of in occasions of financial uncertainty, which I suppose occasions are at all times unsure. However in occasions 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 thought of calling Bitcoin a blue chip but it surely’s all about throughout the asset class that you just’re keen on what’s the blue chip thought-about, proper? And in crypto, it’s Bitcoin.”
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