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The founder of Into the Cryptoverse, Benjamin Cowen, stated that despite the price increase of major altcoins, liquidity is consistently absorbed by Bitcoin during the later stages of market cycles.
Cowen, a crypto analyst with over 1 million followers on social media platform X, asserted that investments made in leading altcoins or similar new projects will flow back into Bitcoin within one or two cycles. Historically, this pattern unfolds gradually, the analyst explained. Initially, Bitcoin experiences a sharp rise as new capital enters the market. Subsequently, investors redirect profits into altcoins in search of higher returns. After some time, investors revert their capital back to Bitcoin for stability, resulting in a significant decline in altcoins. Thus, BTC regains its dominance in the crypto market by absorbing liquidity from overvalued projects, the businessman indicated.
Currently, Bitcoin’s market capitalization stands at $1.4 trillion, while the total cryptocurrency market capitalization is $2.4 trillion. Consequently, Bitcoin’s dominance in the digital asset market is approximately 58%.
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In November 2024, Bitcoin surged from $70,000 to $100,000 following Donald Trump’s victory in the U.S. presidential election. The market reacted positively to campaign promises to establish a strategic state reserve of Bitcoins. Later, in January 2025, capital began flowing into cryptocurrencies like Solana, which reached an all-time high of $295. A few months later, Bitcoin resumed its upward trajectory, achieving a new record of $126,198 in October. This was driven by interest from both retail and institutional investors; however, SOL was unable to reach a new peak.
In the current bearish trend, Bitcoin is trading above $70,000—approximately 44% below its peak—while Solana has dropped 70% from its peak, now priced at $89.4. Over the past week, Bitcoin’s price decreased by 2.3%, while altcoins HYPE and XRP increased by 6.7% and 2%, respectively. Cowen’s thesis suggests that over time, the dominance of altcoins will diminish as capital returns to Bitcoin.
Previously, Cowen indicated that Ethereum is unlikely to recover to its previous high prices this year, and other altcoins will also find it challenging to reach new heights in the near future. In October, the crypto analyst stated that if Bitcoin were to decline, altcoins could experience an even sharper drop.
