Traders Are Flocking to ‘Blue Chip’ Bitcoin and Fleeing Altcoins, Says Analyst Benjamin Cowen – Here’s Why

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Pop­u­lar strate­gist Ben­jamin Cowen says that a real­lo­ca­tion of funds is occur­ring in the cryp­to asset space with Bit­coin (BTC) emerg­ing as the major beneficiary.

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

Accord­ing to Cowen, even Ethereum (ETH) also los­es val­ue rel­a­tive to Bit­coin as peo­ple real­lo­cate to the king crypto.

“The alt­coin mar­ket is high­ly illiq­uid and peo­ple are flock­ing to the rel­a­tive safe­ty of the blue chips that sends the dom­i­nance of Bit­coin higher…

The alt­coin mar­ket bleeds to ETH and Bit­coin. The­o­ret­i­cal­ly, ETH bleeds to Bit­coin as well. The dom­i­nance goes up and it sends you the Bitcoin/US dol­lar val­u­a­tion high­er at the expense of the alt­coin mar­ket liquidity.

At some point, the alt­coin mar­ket liq­uid­i­ty can no longer sus­tain the Bit­coin price… as Bit­coin rolls over, the alt­coin mar­ket gets even more wrecked.”

The pop­u­lar cryp­to ana­lyst says that Bit­coin is more appeal­ing cur­rent­ly than alt­coins due to the pre­vail­ing macro­eco­nom­ic environment.

“We essen­tial­ly have this dynam­ic where this liq­uid­i­ty from the low­er liq­uid­i­ty assets are seek­ing out the rel­a­tive safe­ty of the high­er liq­uid assets, right.

Because in times of eco­nom­ic uncer­tain­ty, which I guess times are always uncer­tain. But in times like this where there’s there’s plen­ty of macro stuff to talk about: invert­ed yield curve, high infla­tion, a more hawk­ish Fed­er­al Reserve than we’ve seen in 40 years, peo­ple are going to seek out the rel­a­tive safe­ty of the blue chips with­in that asset class…

Peo­ple that are not in cryp­to with sort of scoff at the idea of call­ing Bit­coin a blue chip but it’s all about with­in the asset class that you’re inter­est­ed in what is the blue chip con­sid­ered, right? And in cryp­to, it’s Bitcoin.”


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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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