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Cowen urged not to wait for a repeat of the bullish crypto trend of 2020–2021, 2026/01/15 12:41:22
Analyst Benjamin Cowen said that trying to make forecasts for Bitcoin and altcoins based on the 2021 scenario does not make sense. According to him, the structure of the crypto market has changed, and the Advance/Decline index for the top 100 cryptocurrencies remains in a steady downward trend since 2021.
“Don’t try to artificially recreate the 2020-2021 bull market. The Advance/Decline Index (ADI) for the top 100 cryptocurrencies has been in a severe downward trend since 2021,” Cowen said.
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He recalled that five years ago, the growth in the rate of the first cryptocurrency was accompanied by the participation of other digital coins. Then the ADI index also showed a steady upward trend, but now the situation in the crypto market is completely different, as in the altcoin sector.
“The Bitcoin bull market has been masking the fundamental weakness of altcoins for years. But now, when the asset has been stagnating for about a year, the weakness of other assets has become much more obvious, and it is increasingly difficult to ignore,” the expert noted.
Altcoins were never able to support Bitcoin due to a lack of liquidity and weak demand from investors. The emergence of many new coins only exacerbates the problem of market weakness and disperses capital, Cowen believes.
Earlier, Bitwise investment director Matt Hougan said that the US Federal Reserve’s (FRS) interest rate easing cycle could become the main driver of Bitcoin growth in 2026.
