Crypto analyst Benjamin Cowen, who is closely followed by many, believes that a change in monetary policy will likely be the catalyst for an “altseason,” a period where altcoins significantly outperform Bitcoin (BTC).

In his recent strategy session, Cowen compares the Federal Reserve’s balance sheet with Ethereum (ETH) versus Bitcoin (ETH/BTC). He points out that in previous market cycles, altseasons didn’t begin until the Fed stopped quantitative tightening (QT) and increased the assets on its balance sheet.

“What enabled this forecast was understanding the impact of tighter monetary policy. In the last cycle, we didn’t see the bottom of ETH/BTC or the top of BTC/ETH valuation until the Fed ended quantitative tightening…

Therefore, it’s evident that the Fed is following the same pattern this cycle, and ETH has lost value to Bitcoin, just like it did in the previous cycle. This can also be said for many other altcoins…

In fact, if you look at a basket of altcoins, you’ll see that they have reached new lows this week. My argument has always been that they will likely approach the range low before there is any real hope for an altseason to occur. You can also observe the decline of OTHERS/BTC since the beginning of 2022.

There are many people who refer to this as the ‘memecoin supercycle’ and try to hype up altseason, claiming that these memecoins will outperform. However, in the end, they continue to lose value compared to Bitcoin.”

Source: Benjamin Cowen/YouTube

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook, and Telegram

Surf The Daily Hodl Mix

Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia