These Altcoins Could Vanish from the Market, Warns Analyst
According to renowned analyst Benjamin Cowen, the prolonged crypto winter could spell trouble for many altcoins, with some potentially disappearing altogether. In a recent YouTube video, Cowen expressed his belief that altcoins will hit a plateau and face challenges in the coming months, extending into 2024. He predicts a period of depression for altcoins, followed by a resurgence in 2025.
Can Altcoins Stage a Comeback?
Cowen suggests that during this period, some altcoins will reveal their true value, while others will fail to reach new all-time highs in the next bull market. This is a trend that has been observed in previous cycles. It is important to note that not all cryptocurrencies will experience the same surge as Bitcoin (BTC) during bull markets.
The Federal Reserve’s Influence on Altcoins
Cowen’s analysis heavily relies on the role played by the US Federal Reserve (Fed). According to Cowen, the Fed’s monetary policy has a significant impact on the cyclical behavior of altcoins.
“I think this is the depression phase. I do think it’s coming. And then I think what comes after it is the altcoin Renaissance, but that doesn’t come until the Fed pivots.”
Cowen does not believe that the US central bank will change its current course any time soon.
“There’s a chance that they pivot this year, but I just don’t think they’re going to. If they do pivot this year, that doesn’t mean the altcoin market is going to immediately go back up.”
The only circumstance that might prompt the Fed to change its policy is if the US economy encounters significant issues. Cowen adds that the fight against inflation is ongoing as prices continue to rise.
Any shift in the Fed’s policy is likely to coincide with a recession, which generally has a negative impact on altcoins and Bitcoin.
Protecting Against Inflation Using Cryptocurrency
Rising inflation is a concern for many investors. Fortunately, cryptocurrency offers a potential hedge against inflation. By diversifying your investment portfolio to include cryptocurrencies, you can protect yourself from the eroding effects of inflation.
Read more: Uber Crypto News
However, it is important to note that investing in cryptocurrencies carries its own risks. It’s crucial to conduct thorough research and seek professional advice before making any investment decisions.
While the future of altcoins may seem uncertain, it’s important to approach the market with caution and stay informed about the latest developments. Whether altcoins disappear or undergo a renaissance, keeping up with the industry’s trends and news is crucial for investors.
For the latest news and updates on the crypto market, visit Uber Crypto News – your reliable source for all things crypto.