Analyst predicts: Bitcoin will gain advantage over altcoins by 2024

Analyst Benjamin Cowen Predicts Bitcoin’s Dominance Over Altcoins to Increase by 2024

Cryptocurrency analyst Benjamin Cowen has pointed out the possibility of further increase in Bitcoin’s (BTC) dominance over altcoins in the coming years. His forecast predicts that by the end of 2024, Bitcoin may gain an advantage over other cryptocurrencies.

BTC.D Index Indicates Potential Decrease in Altcoins Against Bitcoin

According to Cowen, the current dominance of Bitcoin (BTC.D), hovering around 60%, may contribute to a further decline in altcoins compared to Bitcoin. The BTC.D index determines the market capitalization ratio of Bitcoin to the total market capitalization of all cryptocurrencies combined and currently stands at 61%.

TOTAL3 Index Suggests Possible Decreases Relative to Bitcoin

While analyzing the cryptocurrency market, Cowen noticed that the TOTAL3 index, which monitors the market capitalization of all cryptocurrencies excluding Bitcoin, Ethereum, and stablecoins, may also fall in relation to Bitcoin. This suggests potential turbulence in the altcoin market in the near future.

Evolution of ALT/BTC Pairs and Portfolio Diversification According to Cowen

Cowen suggests that ALT/BTC trading pairs may be approaching lows. Given Bitcoin’s dominance at the 60% level, the analyst recommends considering diversifying the investment portfolio towards Bitcoin.

Rise in Bitcoin Dominance at Year-End: Historical Precedent

It is worth noting that in the past, there have been situations where Bitcoin’s dominance increased at year-end. This could be a significant factor to consider in cryptocurrency market analysis.

Bitcoin Surges, Correlation with DXY and Current Price

Currently, Bitcoin is trading at $90,385, experiencing a 2.5% increase over the last 24 hours. Interestingly, it is beginning to correlate with the U.S. Dollar Index (DXY), which reflects the value of the dollar against other major fiat currencies.

Correlated Movements: Bitcoin, DXY, and the Paradox

It is important to note that despite the common belief in a negative correlation between Bitcoin and the DXY index, Cowen observes that this is not always the rule. Observing the complex interrelationships between different market assets is a crucial element of investment analysis.

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