Analyst Benjamin Cowen Predicts That Cardano (ADA) May Experience Another Drop Against Bitcoin (BTC) Before the Year Ends

Cowen noted that ADA has typically fluctuated between 400 and 4,000 sats relative to Bitcoin, with a tendency for a final decline toward the end of the halving year.

Analyst Benjamin Cowen has shared his thoughts on the potential price movements of Cardano (CRYPTO: ADA) against Bitcoin (CRYPTO: BTC) in the coming weeks. According to Cowen's analysis, ADA may experience another decline against BTC before the end of the year, based on historical trends.

Cowen highlighted that ADA has typically fluctuated within a range of 400 to 4,000 sats relative to Bitcoin, with a tendency for a final drop toward the end of the halving year. In a tweet on Saturday, Cowen shared some statistics for comparison.

“I think #ADA / #BTC will get one more drop before EOY and then go up in 2025,” Cowen wrote, adding that ADA/BTC reached lows of around 583 sats in November 2020 and 470 sats in November 2024.

“Showing some stats for comparison. Nov 2020 low: 583 sats Nov 2020 high: 995 sats Dec 2020 low: 503 sats. Nov 2024 low: 470 sats Nov 2024 high: 903 sats (so far) Dec 2024 low: ??? If QT were over I…”

The analyst's analysis suggests that ADA/BTC could drop further before recovering in 2025. He noted that the combination of ongoing restrictive monetary policies and the US dollar's current rally presents bearish conditions for riskier assets like cryptocurrency.

Cowen's analysis aligns with his broader perspective on altcoins. He pointed out that the broader altcoin market, as measured by the TOTAL3-USDT index, has struggled to surpass levels last seen in late 2020.

This suggests that altcoins, in general, might face further weakness, especially as Bitcoin's dominance has been on the rise. Cowen is open to the possibility that Bitcoin dominance may have peaked. However, he cautions that altcoins could continue to face challenges with the ongoing tightening of financial conditions and increasing yields.