The cryptocurrency market remains bearish this week with bitcoin close to the $60.000 support, and recent analysis from expert Benjamin Cowen points to a bearish scenario for Ethereum (ETH) compared to Bitcoin (BTC). In a detailed analysis, Cowen shared with his YouTube followers that the ETH/BTC pair could still experience declines before an eventual recovery.
According to Cowen, ETH/BTC is likely to reach its lowest point during the summer, preceding a more challenging period for Ethereum against the US dollar. He predicts a significant change will occur late this year or early next, depending on Federal Reserve policies.
“My base case at this point is that Ethereum/Bitcoin bottoms this summer, Ethereum/US dollar bleeds a little more and then, at some point late this year or early next year, the Federal Reserve will turn on the printing press of money again. And then you will see a bullish phase for Ethereum/Bitcoin valuation. But I don't think we're there yet. I don’t,” Cowen said.
Cowen also discussed the possibility of up to a 38% drop in the value of ETH/BTC, attributing this to Bitcoin's increased dominance in the market. At the time of analysis, ETH/BTC was trading at 0,04870000 BTC, equivalent to approximately $3.050.
Furthermore, the analyst highlighted that the exact moment when ETH/BTC will find its lowest value largely depends on monetary policy decisions. “June at the earliest, I think Ethereum/Bitcoin bottoms out. June at the earliest. In mid-June… But it will also depend on monetary policy. If we get to June and the Federal Reserve is not yet cutting rates and is not yet moving from quantitative tightening to quantitative easing, then it could go on for longer,” explained Cowen.
