- Leading crypto analyst Benjamin Cowen predicts that Bitcoin could see a surge of around 14%, potentially reaching the 2023 high of $35,000.
- However, Cowen warns that such a surge in Bitcoin’s value might negatively impact the altcoin market.
In a recent conversation on the David Lin Report, celebrated crypto analyst Benjamin Cowen put forward his projection on the potential trajectory for Bitcoin (BTC) and the altcoin market. Cowen speculates that Bitcoin may see a jump of around 14% from its present standing, aiming for a 2023 peak of $35,000.
Considering the volatility and unpredictability inherent to the crypto domain, Cowen admits,
“My guess is that in the short term, it’s really hard to say if Bitcoin can push a little bit higher again. My high-end target would be $35,000 if it can make it there.”
At the time of the interview, Bitcoin was trading at $30,662.
In contrast, Cowen’s forecast for the altcoin market, should Bitcoin reach his upper target for the year, is less optimistic. Cowen cautions,
“If Bitcoin goes to $35,000, it’s not good for the altcoin market. Because the altcoin market will likely just continue to get wrecked on their Bitcoin pairs.”
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Cowen continues to explain that after such a rally, Bitcoin would likely need to retrace some of its movements, as is common in the pre-halving year. This situation could lead to a further downturn in the altcoin market and an increase in Bitcoin dominance.
But why is Bitcoin outperforming altcoins? Cowen attributes it to the drying up of liquidity. As he puts it,
“Liquidity is basically drying up and so people are basically just seeking the relative safety of Bitcoin over the altcoin market. It’s relative safety. It’s not to say that Bitcoin can’t fall, it’s to say that Bitcoin is relatively safer than the altcoin market and liquidity is drying up.”
In a nutshell, while Bitcoin might be on the verge of a significant rally, the ripple effects on the altcoin market may be harsh, with potential disruptions to their respective BTC pairs and a decrease in their overall market value. Thus, crypto traders and investors may need to tread carefully in this volatile landscape.
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