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After enjoying a mini price run in the last week of October, Bitcoin’s price has corrected below $68,000 to start the first week of November. While this is normal price action for Bitcoin, this trend also has implications for the crypto industry, especially altcoins. Historical patterns suggest that the performance of altcoins is highly dependent on Bitcoin’s price action. BTC’s market dominance has reached 60%, which affects the performance of the altcoin market and limits price increases.
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Crypto analyst Benjamin Cowen expects altcoins to experience a steep decline, likely in early 2025, before recovering. In a post, Cowen states that the market will first witness a substantial loss in value for altcoins before signs of recovery appear.
According to Cowen, the altcoin market will face “a reckoning,” and holders and traders can expect the correction to occur in December 2024 or early January 2025.
It looks like the grand finale of the altcoin reckoning has finally arrived.
The calculation of the altcoins should be completed in December 2024 (no later than the second week of January 2025).
It has been a long journey and many have given up along the way, but this process would always repeat itself pic.twitter.com/WRVUvIHDTt
— Benjamin Cowen (@intocryptoverse) November 3, 2024
Altcoin market revisits 2019 price action
In a YouTube video, Cowen predicted the price action of altcoins after looking at Bitcoin’s price and historical trends. The founder of ITC Crypto explained that an altcoin market rally will not happen anytime soon due to Bitcoin’s current performance and market conditions.
Data shows that altcoins are losing ground to the world’s most important asset, and altcoins can only appreciate if Bitcoin goes on a parabolic run.
According to Cowen, the current market situation for altcoins is similar to what happened in the bear market in 2019. Altcoins were bearish during this period before gradually recovering in 2020 and reaching new highs after a year.
Cowen expects the same story for altcoins in 2025: altcoin prices will first fall before they can start to rise.
Analysts now have mixed opinions on Altcoins’ market performance
In another post, Cowen revisited the Bitcoin/altcoin peg and said it has been losing for three years. He stated that the duo’s performance is in line with historical trends, with the last two ‘alt seasons’ taking place after the halvings in 2017 and 2021.
BTC continues its dominance of the crypto market
Bitcoin remains the leader in the cryptocurrency industry, with a 60.5% market share. According to Cryptographic, Bitcoin is enjoying a two-year high, stabilizing market prices within the $68,000 and $70,000 range. While Bitcoin continues to show strength, other alternative cryptos saw declining values, with some falling by 20 to 40%.
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Traditionally, Bitcoin’s dominance has often coincided with declines in altcoin prices. However, many experts say that a possible turning point could occur if BTC reaches resistance between 64 and 65.81%. If this happens, BTC could hit another all-time high or move sideways. However, if BTC’s market share falls below 50%, we can expect a price increase for altcoins.
Featured image from Pexels, chart from TradingView
Credit : www.newsbtc.com
