‘The grand finale of the altcoin sell-off has begun’

Whether crypto investors want to admit it or not, the harsh reality is that it would have been best to ignore altcoins in recent years. Although there are of course exceptions, Bitcoin (BTC) has been outperforming the rest of the market for years. But the altcoin sell-off appears to have reached its final stages, concludes renowned crypto analyst Benjamin Cowen.

Years of altcoin correction nears possible climax

Finally light at the end of the tunnel for altcoin holders. At least, if we can believe Cowen. Yesterday he wrote on social media platform X that he believes “the grand finale” of the altcoin correction has arrived.

Cowen shows a graph of the (TOTAL3-USDT/BTC) in his X-post. This may seem like a math problem, but it shows how the total market capitalization of all cryptocurrencies except Bitcoin, Ethereum (ETH) and USDT compares to that of Bitcoin.

So the graph charts how the altcoin market is doing compared to Bitcoin. The price has fallen sharply since the end of 2020, which simply means that most altcoins are losing out to Bitcoin.

Cowen has long shared the expectation that the price will move in somewhat the same way as in the previous cycle. In that case, the chart should bottom out next month or the second week of January at the latest. That would mean there’s a little more pain ahead for altcoins.

If this were to play out, it does not mean that altcoins will necessarily see a major decline. But Bitcoin would retain its throne as king of the crypto market for a while.

“It has been a long journey, and many have given up along the way, but this process was always meant to unfold this way,” Cowen ended his post.

Bitcoin bull market about to begin?

However, a big difference in the price chart is that Bitcoin is now much further along in its cycle. The Bitcoin halving is currently more than six months behind us, while in 2019 (which Cowen draws the comparison with) it would only take place a year later. So the market does not move in exactly the same way.

The Bitcoin price just missed rising to a new all-time high last week, but if history repeats itself, we wouldn’t have to worry. In that case, the bull market would be about to begin. Perhaps tomorrow’s American presidential elections can herald the parabolic market, but then a victory for Donald Trump seems to be a requirement.