Bitcoin (BTC) is still the “better game” despite altcoin rallies, according to analyst Benjamin Cowen
A popular crypto analyst says that despite a week in which altcoins surged in price, Bitcoin (BTC) is still the best play for crypto market participants.
In a new strategy session, Benjamin Cowen tells his 781,000 YouTube subscribers that altcoins are risky even if their prices rise because he believes the Bitcoin Dominance Index (BTC.D) will rise no matter which direction BTC goes.
The BTC.D chart shows how much of the total crypto market cap is owned by Bitcoin. Bullish BTC dominance suggests that Bitcoin is rising faster than other crypto assets, or that altcoins are falling in value while the leading cryptos are rising. In a bearish scenario, rising BTC dominance suggests altcoins are falling faster than Bitcoin.
Says Cowen
“If [BTC] erupts or whether it collapses, the [BTC] The dominance should rise one way or another. This is the thesis: that bitcoin dominance should rise regardless of whether bitcoin collapses or collapses…
Since we started in 2022, I’ve been saying that altcoins just aren’t worth the risk compared to bitcoin… I don’t think they’re worth the risk yet [but] that doesn’t mean some of them haven’t bottomed on their USD pairs yet.”
Not only will BTC’s dominance rise, but Cowen says Bitcoin is the better game for investors as it will draw less attention from regulators.
However, he notes that altcoins could start thriving in early 2024 or later this year.
“Bitcoin remains the better game in terms of your risk-adjusted return, so for the risk you are taking, bitcoin remains the better game now. Why could this be for a fundamental reason? I think rules…
Bitcoin will not have the same type of regulatory scrutiny as the altcoin market and I think 2023 is likely to be a tough year for altcoins around these regulations. Once we get to 2024 and maybe even late 2023, I’ll take off my maxi hat and I probably will [get] back into the altcoin market.”
Bitcoin is changing hands for $20,703 at the time of writing, a fraction of the day.
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