Altcoins Poised to Outperform Bitcoin as Recession Indicator Signals Opportunity: Analyst Benjamin Cowen
Crypto Analyst Benjamin Cowen believes that altcoins are poised to gain ground against Bitcoin in the near future, driven by macroeconomic indicators. In a recent YouTube video, Cowen, with a substantial following, highlights the Sahm Rule Recession Indicator, which monitors potential recession signals.
The indicator triggers when the national unemployment rate’s three-month moving average rises by 0.50 percentage points or more compared to its low over the previous year, according to the Federal Reserve Bank of St. Louis. In July, the indicator hit 0.53 percentage points, indicating a potential economic downturn.
Cowen interprets this as a signal of looser monetary policy on the horizon. He suggests that as looser monetary policies are implemented, Bitcoin’s dominance could soon peak. He speculates that this shift may occur as early as September or by December at the latest. Cowen points to weakening labor market indicators, such as job openings per unemployed worker returning to pre-pandemic levels, as evidence supporting his view.
The analyst emphasizes the significance of potential rate cuts in the future, indicating a worsening economic outlook until such measures are implemented. Cowen’s analysis suggests that altcoins may begin to outperform Bitcoin in the coming months as a result of these macroeconomic indicators.
The discussion around the potential shift in dominance from Bitcoin to altcoins is supported by Cowen’s assessment of the current economic landscape, indicating a possible change in the cryptocurrency market dynamics in the near future.
