Merchants Are Flocking to ‘Blue Chip’ Bitcoin and Fleeing Altcoins, Says Analyst Benjamin Cowen – Right here’s Why

Well-liked strategist Benjamin Cowen says {that a} reallocation of funds is going on within the crypto asset area with Bitcoin (BTC) rising as the main beneficiary.

Cowen tells his 783,000 YouTube subscribers that Bitcoin dominance is rising as individuals dump altcoins in favor of the “blue chip” crypto asset.

Based on Cowen, even Ethereum (ETH) additionally loses worth relative to Bitcoin as individuals reallocate to the king crypto.

“The altcoin market is very illiquid and persons are flocking to the relative security of the blue chips that sends the dominance of Bitcoin increased…

The altcoin market bleeds to ETH and Bitcoin. Theoretically, ETH bleeds to Bitcoin as nicely. The dominance goes up and it sends you the Bitcoin/US greenback valuation increased on the expense of the altcoin market liquidity.

In some unspecified time in the future, the altcoin market liquidity can now not maintain the Bitcoin worth… as Bitcoin rolls over, the altcoin market will get much more wrecked.”

The favored crypto analyst says that Bitcoin is extra interesting presently than altcoins because of the prevailing macroeconomic surroundings.

“We basically have this dynamic the place this liquidity from the decrease liquidity property are in search of out the relative security of the upper liquid property, proper.

As a result of in occasions of financial uncertainty, which I assume occasions are at all times unsure. However in occasions like this the place there’s there’s loads of macro stuff to speak about: inverted yield curve, excessive inflation, a extra hawkish Federal Reserve than we’ve seen in 40 years, persons are going to hunt out the relative security of the blue chips inside that asset class…

Individuals that aren’t in crypto with type of scoff on the thought of calling Bitcoin a blue chip nevertheless it’s all about inside the asset class that you just’re keen on what’s the blue chip thought-about, proper? And in crypto, it’s Bitcoin.”

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