In a recent podcast, renowned crypto analyst Benjamin Cowen shared his bullish outlook on Ethereum (ETH), predicting that it will begin to outperform Bitcoin (BTC) in 2025. Cowen’s analysis is based on historical patterns and the current market dynamics influencing these two leading cryptocurrencies.
Cowen has examined the ETH/BTC ratio and believes that Ethereum is approaching the end of its period of underperformance relative to Bitcoin. He asserts, “I think Ethereum will start to outperform Bitcoin in 2025. I feel pretty confident about that.” This shift in performance is anticipated to occur as Ethereum potentially rebounds from a dip that could see its price fall below $2,000 later this year. Cowen highlighted that upcoming decisions by the Federal Reserve are likely to play a significant role in shaping market conditions. “I think we’re likely going to see this pivot occur sometime in the next few months,” he noted.
While maintaining a generally positive long-term view on both Bitcoin and Ethereum, Cowen advises investors to be cautious in the short term. He suggests that investors consider adjusting their portfolios to increase their Ethereum holdings, potentially raising their allocation to 20% by 2025. This recommendation comes as part of a broader strategy to navigate the current phase of quantitative tightening, similar to what was observed in 2019, which Cowen expects to transition into quantitative easing as the Federal Reserve changes its monetary policy.
Cowen also pointed out the significant impact of macroeconomic factors, such as interest rates and the Federal Reserve’s balance sheet, on the cryptocurrency market. His insights underscore the importance of understanding market cycles and adjusting investment strategies accordingly.
In summary, Cowen’s forecast implies a potential transformation in the relative value of Ethereum compared to Bitcoin, urging investors to reassess their positions and prepare for a possible shift in market leadership.
