Analyst Benjamin Cowen says new US inflation data scheduled for release this week could hint at a continued bear market for Bitcoin (BTC).
Cowen tells his 756,000 YouTube subscribers that he believes the U.S. Federal Reserve will remain financially hawkish until inflation comes back down.
He notes he used to hope BTC would hit $100,000 by 2023, but he says he doesn’t believe that is a likely scenario at this point.
Cowen says the US dollar is in a bull market, explaining that when Bitcoin is going down, the dollar is normally going up, and vice versa.
“As long as the dollar remains in this macro bull trend, I think it’s safe to assume that Bitcoin’s going to remain under some sell pressure here. And not just Bitcoin, but in general risk assets.
The main point of all this is to say we have inflation data coming this week, and it’s likely going to be higher than it was last month, and therefore, when you look at it year over year, we’re likely going to look at this and say, ‘Well, inflation hasn’t necessarily peaked.’
If that’s the case, then the S&P — [there’s] a good chance it hasn’t necessarily bottomed, and if that’s the case, there’s a good chance Bitcoin is still in fact in a bear market.”
Bitcoin is trading for $19,414 at time of writing. The top-ranked cryptocurrency by market cap is down more than 2% in the past 24 hours.
The U.S. Bureau of Labor Statistics is scheduled to release the newest Consumer Price Index data today.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/iurii/Andy Chipus