Altcoins Face 2.3% Decline Against Bitcoin Amid Tight US Monetary Policy

Crypto analyst Benjamin Cowen has issued a warning to traders, indicating that altcoins are likely to continue their downward trend against Bitcoin (BTC). In a recent thread on the social media platform X, Cowen shared his insights with his 1 million followers, highlighting that the current US monetary policy, which remains tight, is a significant factor in this trend. According to Cowen, the strong economy is delaying rate cuts and the end of quantitative tightening (QT), which in turn keeps monetary policy restrictive. This environment, he suggests, supports the idea that altcoin/BTC pairs are heading towards their range lows.

Cowen's analysis is grounded in historical patterns observed during the last two summers, where altcoin pairs against BTC would rally briefly before declining in the fourth quarter. He believes this pattern could repeat, with a larger bounce in altcoin/BTC pairs potentially occurring in November. This historical context provides a framework for understanding the current market dynamics and the potential future movements of altcoin prices relative to Bitcoin.

The total market cap of all crypto assets excluding Bitcoin and Ethereum (ETH), referred to as TOTAL3, is currently at $827.5 billion, reflecting a 2.3% decrease on the day of the analysis. This decline underscores the broader market sentiment and the challenges faced by altcoins in maintaining their value against Bitcoin.

Cowen also emphasized the importance of distinguishing between ALT/BTC pairs and USD/BTC pairs, as they behave differently. He noted that while altcoins have been losing value against Bitcoin, they have shown gains when paired with the US dollar. This distinction highlights the complex interplay between different cryptocurrencies and traditional fiat currencies, and the need for traders to understand these dynamics to make informed decisions.

Cowen's analysis serves as a reminder of the volatility and unpredictability of the cryptocurrency market, and the importance of staying informed about broader economic trends and historical patterns. As the market continues to evolve, traders and investors will need to adapt their strategies to navigate the challenges and opportunities presented by the ever-changing landscape of digital assets.