Popular crypto analyst Benjamin Cowen believes Bitcoin (BTC) could outperform altcoins for the rest of 2024.
Cowen tells his 884,400 followers on the social media platform X that the alts could decline further against the flagship crypto asset as Bitcoin’s dominance level (BTC.D) hovers around 60%.
BTC.D is the ratio between the market cap of BTC versus the market cap of all crypto assets combined. At the of writing, BTC.D is at 61%.
He also says that the TOTAL3 chart appears to be on the verge of declining on the weekly timeframe against Bitcoin (TOTAL3/BTC), similar to what occurred in 2020. The TOTAL3 chart tracks the market capitalization of all crypto assets excluding Bitcoin, Ethereum (ETH) and stablecoins.
“Still a decent chance that ALT/BTC pairs go to the range lows. They really are not that far away. In fact, in November 2020 they went from the current levels to the range lows in only about a month. With BTC dominance at 60% it can already make sense to diversify as not all alts have to bottom against BTC at the same time.”
According to Cowen, there is historical precedence for BTC.D to increase for the rest of the year.
“With ALT/BTC pairs still 20-30% off their range lows, BTC dominance could continue higher. Normally BTC dominance goes up in Q4 of halving years, so I’d be open-minded to dominance staying strong through the end of the year (second week of January at the latest).”
He also shares a chart showing how BTC is outperforming top altcoins by market cap.
“You can see that BTC has stolen the show away from the alts once again. As I said, be open-minded to BTC dominance staying strong for a little bit longer, but I do think dominance will go down in 2025. But a lot can happen between now and 2025.”
Lastly, Cowen says that Bitcoin’s performance is suddenly correlating with that of the US dollar index (DXY).
The DXY is a metric that tracks the value of the US dollar against a basket of major fiat currencies.
“People keep asking me why BTC is going up with DXY, but as I said this is exactly what happened in Q4 2016. BTC and DXY are not always negatively correlated, despite that being the prevailing opinion.”
Bitcoin is trading for $90,385 at time of writing, up 2.5% in the last 24 hours.
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