Analyst Benjamin Cowen predicts that Bitcoin might see some growth, but he believes altcoins could actually outperform it in 2025. He also thinks Ethereum may experience one last drop before bouncing back significantly next year.
In a recent chat on the “Altcoin Daily” YouTube channel, Cowen drew some interesting comparisons. He noted that Bitcoin's current market cycle looks a lot like its behavior back in 2019. Remember that? A 350% rally followed by a period of consolidation. He pointed out that Bitcoin's recent moves fit historical four-year cycle patterns, even though some folks are speculating about a possible "left translated peak."
When it comes to Ethereum, Cowen highlighted its historical patterns in relation to Bitcoin. He suggested that the ETH/BTC pair might be nearing a bottom. He believes Ethereum could rebound strongly in 2025 after a potential final decline.
Looking ahead, Cowen is optimistic. He said, "I think the bigger story next year will actually be while Bitcoin could go up, I think the altcoin market will likely outperform Bitcoin next year." It’s an interesting take!
Cowen also discussed how Federal Reserve policies could impact crypto markets. He suggested that rate cuts might be key to driving the next phase of the cycle. He emphasized, "We need to get to the point where the Fed is willing to loosen up monetary policy."
He pointed to several indicators that support his view. For instance, he mentioned the relationship between Bitcoin and gold prices, as well as Bitcoin's return on investment from cycle lows. Cowen stated, "You can actually see that Bitcoin is essentially right where it always is around this time in the cycle."
While he remains cautious about making specific price predictions, Cowen stressed the importance of risk management and understanding market cycles. He advised investors to use risk metrics and to evaluate their portfolios in terms of Bitcoin. This approach can help them navigate the crypto markets more effectively.
Finally, the role of Bitcoin as an institutional asset class will be explored further at Benzinga’s upcoming Future of Digital Assets event on November 19. It’s an event you won’t want to miss!