Benjamin Cowen, a prominent voice in the cryptocurrency space, warns that Ethereum (ETH) may continue its struggle against Bitcoin (BTC) as the year draws to a close. In his latest video briefing, Cowen highlighted that the ETH/BTC ratio could fall to critical lows, potentially reaching a bottom point in the current market cycle.

What Are Cowen’s Predictions?

Cowen pointed out that the ETH/BTC trading pair is approaching historically low levels. He speculates that, given the prevailing market conditions, a decline to approximately 0.017 in the ETH/BTC ratio is plausible.

Benjamin Cowen stated, “The ETH/BTC market cap ratio is very close to its bottom. There is a possibility for this ratio to hit the floor.”

How Will Fed Policies Impact the Market?

Cowen also suggested that if the U.S. Federal Reserve halts its quantitative tightening measures, the ETH/BTC ratio could see significant declines. These policy decisions could heavily influence ETH’s pricing trajectory.

While Cowen anticipates potential signs of market recovery following any policy shifts, he cautions that a lasting upward trend hinges on the conclusion of the tightening phase. The market may remain volatile in the interim.

Recent actions by the Federal Reserve, particularly its balance sheet reduction strategy initiated in June 2022, have contributed to these market conditions. Currently, the ETH/BTC ratio is at 0.0264, indicating a 3.2% decline over the last 24 hours. This data is vital for those closely observing market fluctuations.

– Investors should monitor market data and policy changes closely.
– Cowen’s insights provide valuable context for understanding potential price movements.
– Unexpected shifts in market dynamics could still arise, regardless of predictions.

The evolving landscape of cryptocurrency necessitates vigilance as investors navigate these challenging conditions. Monitoring Cowen’s predictions and the implications of Federal Reserve policies will be crucial for making informed decisions.