The post Crypto Market Crash: ‘Buy the Dip’ Could Spell Trouble for Altcoins, Warns Analyst appeared first on Coinpedia Fintech News
Altcoin prices have dropped sharply, with several of the top twenty cryptocurrencies falling by over 15 percent. However, the global cryptocurrency market cap has increased by 3.93 percent over the last 24 hours, reaching $2.38 trillion.
Today, Bitcoin’s market cap stands at $1.28 trillion, constituting 53.92 percent of the total market value, the highest since April 2021. This surge in Bitcoin’s dominance is altering market dynamics, causing altcoins to lose market share. Meanwhile, one analyst warns crypto investors not to buy the dip in altcoins.
Here’s Why Buying the Altcoin Dip Will Be Fatal:
If you are excited to buy the dip, then take the analyst’s advice with a grain of salt. Benjamin Cowen, CEO of Into The Cryptoverse, goes against the crowd by advising against buying altcoins during a market correction. He points to past trends, warning of a possible further drop, comparing it to the 2019 altcoin decline caused by Ethereum’s struggles against Bitcoin.
Cowen has previously warned that if the Federal Reserve lowers interest rates, it could also cause a big drop in the crypto market this quarter. He’s particularly worried about altcoins and suggests investors be cautious of potential declines.
Next, he stresses the importance of Bitcoin dominance, forecasting a possible increase to 60%, which historically aligns with downturns in altcoins. Despite claims of a continuing bull market, Cowen is wary, pointing to past occasions when Bitcoin’s rise coincided with altcoin declines, like he said it was often influenced by macroeconomic events like actions from the Federal Reserve.
Matrixport, a digital assets platform, shares Cowen’s view, highlighting the increasing dominance of Bitcoin as a sign of a limited bull market. Disagreeing with predictions of a forthcoming altcoin rally, Matrixport proposes that Bitcoin could maintain its market dominance, reducing the likelihood of significant gains for altcoins overall.
Crypto Current Snapshot
In the meanwhile, over the weekend many big altcoins saw a drop; Ethereum went down by 1 percent, Solana by 4 percent, Dogecoin by 3 percent, Cardano by 3.41 percent, Avalanche by 3.74 percent, and Shiba Inu by about 3.95 percent. Plus, Bitcoin’s price fell by almost 8 percent, from roughly $70K on April 12 to $62K on April 16.
Both Cowen and Matrixport’s analyses signal a period of potential turbulence for altcoins, cautioning investors to consider Bitcoin’s dominance and historical patterns before making investment decisions.
