During the early trading hours on Sunday, the overall crypto market has entered a neutral mood where a few altcoins keep rising, while others have entered the correction zone. Bitcoin (BTC) Price is trading slightly above the $23K zone while Ethereum price is trading at $1,685.41.
On the other hand, The Bitcoin dominance rate is seeing a downtrend since being rejected by the 48% resistance area.
Bitcoin Dominance level can see a shift!
Popular crypto analyst Benjamin Cowen in his recent video update outlines how the bitcoin dominance level plunged from 73% in 2021 end to 41% at press time. The Analyst believes that the second largest cryptocurrency Ethereum could boost the bitcoin dominance level following the merger.
As per Cowen, the much-awaited “The Merge” Event switching from a proof-of-work network to a proof-of-stake can act as a “sell on the news” event with traders shifting their funds to the largest cryptocurrency Bitcoin.
Cowen says that, the bitcoin dominance level can trun around with “some major events coming up that at which point the narrative could shift and maybe there could be various re-weightings of portfolios?”
one of the biggest things is obviously the Merge for Ethereum. There’s certainly a lot of momentum behind that right now… and that theoretically is coming up in September, where it transitions from proof-of-work to proof-of-stake… – Says Benjamin Cowen.
According to analyst, the Bitcoin Dominance level will initiate a turnback in the month of September with the Ethereum merge. He also believes that many traders will reallocate some of their portfolios following the event. Overall, Cowen believes that the merger might be delayed again like many times previous.
Another popular analyst, with Twitter, handle @ImNotTheWolf is expecting overall BTCD to continue its downtrend. He expects that Due to their volatile & illiquid nature, bottom levels on #altcoins likely hit before Ethereum or Bitcoin. Altcoins will outperform the majors since bag holders have already capitulated.