A well-watched crypto analyst says Bitcoin (BTC) remains the top game for crypto market participants, despite a week that saw altcoins soar.
In a new strategy session, Benjamin Cowen explains to his 781,000 YouTube subscribers that altcoins are risky, even if their prices soar, because he believes the bitcoin dominance index (BTC.D) will rise regardless the direction taken by the BTC.
The BTC.D chart shows Bitcoin’s share of the total crypto market capitalization. A bullish BTC dominance suggests that Bitcoin is rising faster than other cryptoassets, or that altcoins are losing value as the leading crypto surges. In a bearish scenario, a rising BTC dominance indicates that altcoins are falling faster than bitcoin.
That’s what Cowen says,
” Whether it be [BTC] or that it collapses, the [BTC] dominance should increase in both cases. This is the thesis: bitcoin dominance should rise whether bitcoin crashes or not…
Since we started in 2022, I’ve said altcoins just aren’t worth the risk compared to bitcoin…I don’t think they’re worth it yet. [but] but that’s not to say that some of them haven’t bottomed out on their USD pairs. »
Not only is BTC’s level of dominance locked to rise, but Cowen also says that Bitcoin is the best game for investors because it will attract less attention from regulators.
However, he notes that altcoins might start to bloom in early 2024 or later this year.
“Bitcoin is still the best game in terms of risk-adjusted return, so for the risk you’re taking, bitcoin is still the best game now. From a fundamental point of view, why is that? I think the regulations…
Bitcoin is not going to have the same type of regulatory scrutiny as the altcoin market, and I think 2023 is likely to be a tough year for altcoins in the context of those regulations. Once we get into 2024, and maybe even the end of 2023, I’m going to take my big hat off and I’ll probably… [get] return to the altcoin market. »
Bitcoin is changing hands for $20,703 as of this writing, a split day dip.
