Closely followed crypto analyst Benjamin Cowen is warning that one Ethereum (ETH) competitor may not be done correcting.
In a new strategy session, Cowen tells his 788,000 YouTube subscribers that smart contract platform Cardano (ADA) may fall lower against Bitcoin (ADA/BTC) due to the Federal Reserve not yet cutting interest rates.
“If you look at where it came into the year, it was around 1,600 sats (satoshis) and back then I said it’s likely going to go to 800 sats by the summer. I was laughed off crypto Twitter essentially. Then it went to 800 sats, which, back in early 2022, is where I said the best-case scenario would be.
But once it got here, I was fairly convinced, and I kind of still am to some degree, that it could go lower. The reason I think it could go lower is because, again, we still haven’t reached looser monetary policy yet.”
Cowen predicts that the Fed will likely start cutting rates around March 2024, and riskier assets like ADA could start to rally against Bitcoin at that time.
“So the average length of a Fed pause before they start to cut is about eight months. Eight months puts you in March…
Once they pause and then start to go back to looser monetary policy, once you get rate cuts, that’s when riskier assets like altcoins can find a durable bottom against Bitcoin.”
ADA/BTC is trading for 0.0000102 BTC ($0.39) at time of writing.
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