The latest from a well-known crypto analyst on EthereumETH) competitor Solana (SOL) as the market chops around.
In a new video update, crypto strategist Benjamin Cowen tells Solana’s 808,000 subscribers on YouTube could see his value plummet if the same market patterns in 2019 repeat themselves.
The TOTAL3 graph, which shows the market capitalization of all cryptos excluding BitcoinBTCCowen examines the alts (Ethereum and stablecoins) that rallied during 2019 before plummeting that year after Federal Reserve adopted a more lenient monetary policy. Fed expected to reduce interest rates next After years of increases, the price is now decreasing.
“[Altcoins] had a nice little rally, but they’re giving a lot of it back, which is exactly what happened in the last cycle. Altcoins rallied. They rallied a lot, and then they gave it all back in the halving year. They gave it all back in the pre-halving year and then going into the halving year. They gave it back right around the time as that looser monetary policy arrived. A lot of that, a lot of those gains are given back. And so you have to wonder is it just kind of doing the same thing. Alts are still struggling to break through here.”
Cowen says that SOL still hasn’t hit its peak and could be subject to a fall similar to those experienced by other alts during 2019.
“I tip my hat to Solana’s outperformance against Bitcoin since 2023 began. I will remind people that there are actually other alts that went on to new all-time highs…[SOL] is still technically not a higher high… If it follows some of the altcoins last cycle that did very well in the QT (quantitative tightening) rally, then if it were to follow through the entire way then essentially what would happen is that there would be a selloff and then there would be another rally after QE (quantitative easing) returns.”
Solana currently trades for $143 as of the time this article was written, down over 3% from its previous 24 hour high.
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