Altcoins in Peril as Expert Analysts Forecast A 40% Price Drop

Altcoins in Peril as Expert Analysts Forecast A 40% Price Drop

Altcoins have suffered more in the crypto market following the Bitcoin price crash, leaving a lot of investors in losses. This is not out of the ordinary as these altcoins are known to have a higher volatility compared to Bitcoin, hence, their price swings can be more pronounced. Given the recent decline, the expectation is that the altcoins will recover. However, one analyst does not agree with that assessment.

Altcoins Are About To Drop 40%

Experienced cryptocurrency analyst Benjamin Cowen stunned the community with his predictions for altcoins in an analysis published on X (previously Twitter). The data indicates that there are still more crashes to come, thus the worst is far from over for the altcoin market.
According to Cowen, this was examined using pairings of altcoins against Bitcoin, and it appears that each one is inferior to the best cryptocurrency. This is because rate cuts are anticipated, and past experience indicates that there will likely be a fall. The cryptocurrency researcher cited the rate drops in 2019 and the way cryptocurrencies responded to such changes at the time. After the rate reductions, prominent players saw losses of up to 40% as cryptocurrencies fell sharply against Bitcoin. Maybe this time around isn't any different? This would imply that over the next few months, ALT/BTC pairs would decline by an additional 40%," stated Cowen.
Cowen anticipates that this will be implemented regardless of what transpires in the market in the interim. He clarifies that the premise remains relevant even in the event of a short-term market recovery. He declared, "Short-term countertrends do not invalidate this view." Should this recur, it has the potential to intensify an already severe market trend. As of the time of writing, the market capitalization of altcoins has already dropped below $1 trillion, but a 40% decline from here may drive it as low as $600 billion.

Crypto Market Is Dragging Down by Bitcoin Crash

The impact on altcoins has been considerably more noticeable, notwithstanding how harsh the Bitcoin slump has been. While certain cryptocurrencies, like Stacks (STX), Arweave (AR), Neo (NEO), and Sei (SEI), have dropped an average of 9% in the past day, Ethereum has held up well, declining less than 4% over this period. Memes were not spared from the carnage, as the top cryptocurrency Dogecoin fell 6% to $0.126 and Pepe (PEPE) fell 7.74% to $0.0000063. Shiba Inu dropped 4.18% and Bonk (BONK) had a 5% loss, giving up some of the gains from the previous week. However, some stocks have done well in the midst of all of this; Optimism (OP) has gained 12%. After that, Cosmos (ATOM) increased by 9.8%, and Starknet increased by 9%, ranking as the day's top gainers, per Coinmarketcap data.