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Benjamin Cowen, a trader and analyst, shares insights on Bitcoin’s continued strong performance compared to altcoins. He emphasizes that U.S. monetary policies have a direct impact on Bitcoin 
$101,281, potentially strengthening its dominance. Cowen predicts a possible new wave of decline in the altcoin market, urging market participants to closely monitor market dynamics and Federal Reserve policies.
Altcoin/Bitcoin Pairs Under Pressure
In his recent strategy session, Cowen highlighted the overall trend in the altcoin market. According to Total3 data, which measures the total market cap of cryptocurrencies excluding Ethereum 
$2,077 and Bitcoin, the altcoin/Bitcoin pairs are currently moving sideways. However, Cowen warns that this stagnation could signal a potential downward trend. He stated, “Altcoin/Bitcoin pairs are currently stable. Similar declining trends are expected in the coming weeks,” calling for caution among altcoin investors.
Investors are noticing a decrease in short-term profit opportunities as trading volumes in the altcoin market weaken. During such periods, large investors, who are typically risk-averse, tend to shift towards safer assets like Bitcoin. Especially during bear market-like phases, significant pullbacks in altcoins create an atmosphere of caution across the market.
Monetary Tightening Benefits Bitcoin
According to Cowen, the primary reason Bitcoin remains stronger than altcoins is the monetary tightening policy implemented by the U.S. Federal Reserve. By keeping interest rates high and continuing quantitative tightening, investors are directed towards limited-supply assets like Bitcoin. Cowen expressed, “The fundamental assumption is that Bitcoin’s dominance will increase until quantitative tightening ends.”
Bitcoin’s dominance, or its share within the total cryptocurrency market, has been trending upward in recent weeks. This trend indicates that during periods of market uncertainty, investors are leaning more towards Bitcoin rather than altcoins. In particular, institutional investors tend to prefer Bitcoin due to its lower volatility in such uncertain environments.
Any potential changes to Federal Reserve policies could alter this balance, according to Cowen. As long as clear signals are not provided in FOMC meetings regarding the end of tightening, Bitcoin’s superiority over altcoins is expected to persist. This aspect contributes to Bitcoin’s prominence in short- and medium-term investment strategies.
Bitcoin Dominance Could Reach New Peaks
Cowen’s analyses reveal that Bitcoin will stand out not only in terms of price but also in market dominance. At the time of writing, Bitcoin is trading at approximately $84,270, continuing to maintain strength against other major cryptocurrencies. The rising dominance rate of Bitcoin indicates ongoing safe-haven searches by investors, distancing themselves from risky altcoin investments.
Moreover, Cowen emphasizes the uncertainties surrounding the U.S. economy that are affecting the market. Particularly, expectations of recession and the unclear timing of interest rate cuts encourage a cautious approach in investment decisions. Bitcoin’s limited supply structure and its historical resilience during crises are highlighted as prominent advantages during this period.
