Popular crypto analyst Benjamin Cowen explains how Ethereum (ETH) can help boost crypto assets with Bitcoin (BTC) market capitalization to raise its dominance.
In a new video ModernizationIn this article, the trader details how the level of BTC dominance, or the overall percentage of the cryptocurrency market made up of Bitcoin, has finally declined for 2020 from about 73% to 41.18% at the time of writing.
Cowen says that Ethereum’s upcoming shift from a Proof of Work network to a Proof of Stake could cause investors to reallocate their funds to the leading digital asset, suggesting that the ETH upgrade could be a selling event on the news.
“When will [BTC’s dominance level] turn around? When are you going back the other way? If I’m just going to guess, one of the things I have to think about is what are some of the major upcoming events at which point the narrative could change and there might be a different re-weighting of the portfolios?
I think one of the biggest things is the integration with Ethereum. There’s definitely a lot of momentum behind that now… and that’s theoretically going to come out in September, as it moves from Proof of Work to Proof of Stake…
I won’t be surprised to see you [Bitcoin’s] The dominance is starting to roll back probably in September if you haven’t already by then, the reason is that you will again be going to this big Ethereum event, and it seems like a reasonable place where people can reallocate some of their portfolios. “
However, Quinn notes that it is possible that the consolidation will be delayed as it was several times before over the years.
Bitcoin is trading at $22,947 at the time of writing, a 1.8% gain on the day while ETH is moving at $1,689, up 5% in the past 24 hours.
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