Popular strategist Benjamin Cowen says a reallocation of funds is taking place in the crypto asset space with Bitcoin (BTC) emerging as the main beneficiary.
Cowen tells his 783,000 YouTube subscribers that Bitcoin’s dominance is increasing as people dump altcoins in favor of the “blue chip” crypto asset.
According to Cowen, even Ethereum (ETH) is also losing value relative to Bitcoin as people reassign to the king cryptocurrency.
“The altcoin market is highly illiquid and people are flocking to the relative safety of blue chips that elevate Bitcoin’s dominance…
The altcoin market bleeds ETH and Bitcoin. Theoretically, ETH also bleeds Bitcoin. The domain rises and sends you the highest Bitcoin/US dollar valuation at the expense of altcoin market liquidity.
At some point, the liquidity of the altcoin market can no longer support the price of Bitcoin… as Bitcoin turns around, the altcoin market goes bankrupt even more.”
The popular crypto analyst says that Bitcoin is currently more attractive than altcoins due to the prevailing macroeconomic environment.
“Essentially we have this dynamic where this liquidity of the less liquid assets seeks the relative safety of the more liquid assets, right?
Because in times of economic uncertainty, which I suppose times are always uncertain. But in times like this, where there’s a lot of macro stuff to talk about: inverted yield curve, high inflation, a more hawkish Fed than we’ve seen in 40 years, people will look to the relative safety of blue chips. within that asset class…
People who aren’t into crypto scoff a bit at the idea of ​​calling Bitcoin a blue chip, but it’s about the asset class you’re interested in what’s considered the blue chip, right? And in crypto, it’s Bitcoin.”
Yo
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