Altcoins have been hit hard in the recent crypto market downturn, especially following the crash in Bitcoin prices, resulting in significant losses for many investors. Altcoins are known for their higher volatility compared to Bitcoin, leading to more pronounced price swings in the market. While some may anticipate a recovery for altcoins, not all analysts share this optimistic outlook.
In a surprising analysis shared by seasoned crypto expert Benjamin Cowen on social media platform X (formerly Twitter), he presented a stark prediction for the altcoin market. According to Cowen’s assessment, the worst may not be over for altcoins, and further crashes could be on the horizon.
Cowen’s analysis is based on the performance of altcoins against Bitcoin pairs, indicating weakness across the board compared to the dominant cryptocurrency. Historical data from past rate cuts suggests that a downward trend could follow, similar to what was observed in 2019 when altcoins experienced significant losses against Bitcoin.
Even if there are short-term market recoveries, Cowen believes that the overall trend for altcoins remains bearish. He warns that a potential 40% drop for altcoin pairs against Bitcoin could materialize in the coming months, adding further pressure to an already struggling market. Such a decline could see the total altcoin market cap plummet to as low as $600 billion from its current level below $1 trillion.
While the recent Bitcoin crash has had a broad impact on the crypto market, altcoins have felt the brunt of the downturn. While Ethereum has shown resilience with a modest decline, other altcoins like Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI) have experienced more significant losses in the past 24 hours.
Even meme coins, known for their speculative nature, have not been immune to the market turmoil. Dogecoin, Pepe (PEPE), Bonk (BONK), and Shiba Inu are among the coins that have seen declines in their prices. However, amidst the sea of red, some tokens like Optimism (OP), Cosmos (ATOM), and Starknet (STRK) have managed to buck the trend and register gains.
As the crypto market continues to navigate these challenging times, staying informed about market trends and expert analysis like Cowen’s can provide valuable insights for investors and traders looking to navigate the volatility in the altcoin space.
