A widely followed crypto analyst is issuing a warning, saying that the rest of 2024 looks less than ideal for altcoins.

In a new video update, crypto strategist Benjamin Cowen tells his 813,000 YouTube subscribers that based on historical patterns, altcoins appear set to plummet near the end of the year and capitulate against Bitcoin (BTC).

Cowen says the capitulation also lines up with the beginning of a new interest rate-cutting cycle.

“If you connect the dots from the last cycle, 2018, 2019 to 2020, you can see that it basically tagged this trend line three times and then the third tag of the trend line ended up being the bottom.

We know that this interest rate cycle, this business cycle, has taken a little bit longer and if you connect the dots again – one, two and three – the third tag of the trend line might actually occur by the end of the year and coincidentally if you look at this trend line where you connect the dots, it hits 0.25 in Q4 which is exactly what I’ve said could be the ultimate outcome: alt/Bitcoin pairs capitulating before the end of the year.

So I think there is a case to be made that alt/Bitcoin pairs will simply get rejected at 0.4, they could still wick a little bit above it, but I ultimately think they will get rejected and they will come back down to the range lows before the end of the year.”

According to Cowen, altcoins will also bleed out against the top crypto asset by market cap due to low net global liquidity, which he argues is a big driver for digital assets.

“One of the things that you have to consider is what’s causing this to go down and arguably one of the main things is net liquidity. So if you look at the global net liquidity approximation, you will see that it has in fact been putting in lower highs and lower lows for a while and actually if you overlay this chart with alt/Bitcoin pairs, you can actually pretty clearly see that alt/Bitcoin pairs broke down to the fake out right at the same time net liquidity was having a fake breakdown.”

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One relatively new decentralized exchange (DEX) is gaining momentum despite the bearish conditions in the crypto segment, according to the digital asset analytics firm IntoTheBlock.

The firm notes the total market cap of major DEX tokens currently sits at $26.6 billion.

“After a brief rise earlier this year, the market has cooled down, wiping out any YTD (year-to-date) gains.”

IntoTheBlock notes that Uniswap’s native token, UNI, is the commanding asset in the space, with 74.93% market cap dominance. But Aerodrome Finance (AERO) is rapidly building momentum in the sector, “making waves in both market cap and volume,” according to the analytics firm.

Aerodrome Finance is a trading and liquidity marketplace on Base, Coinbase’s Ethereum (ETH) layer-2 scaling solution. The project is a fork of Velodrome, a trading and liquidity marketplace originally launched on Optimism (OP), another Ethereum layer-2 scaler.

AERO, the 147th-ranked crypto asset by market cap, is trading at $0.71, up more than 16% in the past 24 hours. The token started trading in September 2023.

IntoTheBlock also notes that the DEX PancakeSwap (CAKE) “punches above its weight in volume, showing that it’s still a top contender despite its lower token value.”

CAKE is trading at $1.80 at time of writing. The 133rd-ranked crypto asset by market cap is up over 2% in the past 24 hours.

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A widely followed crypto analyst believes one Solana (SOL) competitor may have more upside potential.

Crypto trader Michaël van de Poppe tells his 724,900 followers on the social media platform X that layer-one blockchain Sei (SEI) may soar more than 46% from the current value by next month.

“Altcoins are doing relatively well. SEI continues to find momentum, and I’d like to see it rally to $0.34 (preferably even above the previous high, but not expecting that yet), make a HL (higher low) and continue that rally to $0.44 in October.”

SEI is trading for $0.30 at time of writing, up more than 7% in the last 24 hours.

Next up, the analyst says that Bitcoin (BTC) may soon reclaim the $62,000 level if it can flip $58,000 into support.

“Bitcoin is doing what I wanted it to be doing. Great stuff, held above the crucial area of $56,000, and currently attacking resistance. If $58,000 breaks, then I suspect we’ll be at $62,000 in basically no time.”

Bitcoin is trading for $58,198 at time of writing, up nearly 4% in the last 24 hours.

Lastly, the trader predicts that Ethereum (ETH) will dip against Bitcoin (ETH/BTC) if Bitcoin breaks out into the $60,000 range.

“Clear invalidation is taking place on ETH for the bullish divergence as it’s on the fence of dropping sub 0.04 BTC. We’ll drop down some more if Bitcoin shows momentum to $61,000-$62,000.”

ETH/BTC is trading for 0.04039 BTC ($2,351) at time of writing, down more than 1% in the last 24 hours.

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