“But what if it bleeds against Ethereum?” is crypto analyst Benjamin Cowen’s mantra for picking the most solid altcoins in a bull market.
Noting that it’s not that hard to find altcoins that go up in US dollar terms in a bull market, Cowen says that at bare minimum, altcoins should be going up against Bitcoin long term to be worth holding. The analyst says that he would take it a step further and make sure they can also keep up with Ethereum. In his opinion, ETH can be viewed as the “altcoin” index, and if a crypto isn’t able to outperform it, than it may not make sense to hold if macro investing is your jam.
“In a bull market, a monkey could pick out altcoins that go up against the US dollar. It does not take any insider information or anything like that to figure out altcoins might go up against the US dollar.”
The popular analyst looks at a several big altcoins that have had nice trends in USD terms, but have underperformed in their ETH valuations.
“Ethereum Classic. I’ve seen a lot of people ask me about this one. Will it likely trend up against the US dollar if bitcoin remains in a bull market? Yes, but it’s 83% down against Ethereum since December 2017.”
“Monero is another cryptocurrency and honestly I like Monero. It’s like the OG privacy coin, who doesn’t like Monero? Will Monero likely trend up against the US dollar over time? Yeah, it probably will, I mean unless some really strict regulations come out worldwide, then there’s still a decent chance it’ll go up against the US dollar as long as the bull market’s in full swing. Doesn’t change the fact that it’s bled 92% against Ethereum since December 2017…
DASH is another example. I’ve seen people recommend this one a lot. Look, as measured from the wick in January 2018, DASH is down 98% against Ethereum. You say ‘you’re cherry picking’. We’ll take it from the candle, we’re down 97%…Will DASH likely trend up against the US dollar in a bull market? It’s possible. But what if it bleeds against Ethereum?”
With most altcoins bleeding out against Ethereum being the main theme, Cowen says it doesn’t have to be this way. He says there are plenty of coins that at least oscillate against Ethereum, such as Cardano (ADA), Polkadot (DOT), Terra (LUNA), and more. The analyst takes note of how an altcoin’s macro trend against ETH can eventually shift momentum, such as in the case of Chainlink.
While LINK/ETH going parabolic for over 2 years straight starting in 2018, Cowen points out that it’s been bleeding against Ethereum over the last year. Cowen asserts LINK/ETH is something you “better believe” he’s watching closely, adding that he will be “acting accordingly” if it keeps bleeding.
“In order for these cryptocurrencies to not bleed against Ethereum, they can’t just go up. They have to go up at least in tandem with Ethereum. If they can’t, they get left behind.”