Benjamin Cowen expressed scepticism that Bitcoin’s dominance will revert to the levels it achieved in December 2020, before the increase of approximately 220% over three months.
A crypto analyst, Benjamin Cowen, anticipates that Bitcoin’s dominance will reach 60% by the end of September or, at the very latest, in December 2024.
In an interview with The David Lin Report on August 17, Benjamin Cowen, founder of Into The Cryptoverse, stated, “I do not believe it will return to 70%; my objective for Bitcoin’s dominance has been 60%.”
Benjamin Cowen doubts possibility of Bitcoin’s dominance returning to the highs of the previous cycle
Cowen elucidated that Bitcoin dominance, the ratio of Bitcoin’s market capitalization to the entire crypto market, tends to decrease during “major altcoin seasons” like the one in 2021. However, it “slowly” returns to its previous level after “the breakdown.” Nevertheless, in this cycle, he is more certain that Bitcoin will not garner the same level of interest as it did in the past, even if it reaches its peak dominance.
Cowen stated, “There is room for Ethereum and numerous other cryptocurrencies.” He believes Bitcoin will “make that final move” toward 60% as early as September or December.
According to TradingView data, Bitcoin’s dominance has increased by 4.25% since July 18 to 57.36% at the time of publication.
Nevertheless, a crypto trader named Kaleo recently informed his 643,700 X followers that Bitcoin’s dominance may have already reached its zenith.
“I am reasonably certain that this is the cycle top for Bitcoin Dominance,” Kaleo stated in an Aug. 9 X post, when Bitcoin dominance was approximately 57.50%.
“I did not quite achieve the 60% I had anticipated, which is a positive outcome, as it would have been extremely painful,” they continued. Kaleo believes that the “real” alt season commences when Bitcoin’s dominance declines below 50%.
Traders frequently seek indications that Bitcoin’s dominance is reaching its zenith as a signal to sell Bitcoin and allocate capital to alternative assets, such as altcoins.
Bitcoin dominance is different in This cycle
According to CoinMarketCap data, Bitcoin’s price experienced a 220% increase to $61,283 in March 2021, a mere four months after its dominance reached 70.23% in December 2020.
Benjamin Cowen observed that Bitcoin’s dominance is “more complex” in 2024 than in 2019 when it reached a slightly over 71% zenith. This is because the stablecoin market capitalization was significantly lower at that time.
Cowen suggests combining Bitcoin dominance with the dominance of the crypto stablecoin Tether to determine your “flight to safety dominance.”
He clarified in the Aug. 17 interview that the combined figure is approximately 63%, which is comparable to the level in June 2019, before the United States Federal Reserve‘s interest rate reduction announcement.
The combined dominance of USDT and Bitcoin is 63.07% at publication.
