Widely followed crypto analyst Benjamin Cowen says Bitcoin (BTC) will make a big move this year that will frighten a lot of people.
In a new strategy session with Altcoin Daily co-host Austin Arnold, Cowen predicts Bitcoin is going to drop in price later this year and induce panic selling.
“Everyone’s happy right now because of course the price is going up. I think what we’re going to see is we’re going to see the same thing happen again like we saw in 2015, 2019. I think Bitcoin will come back down later this year. It’s going to scare a lot of people, but I think it’s going to be a fairly normal thing. And it’s just going to be the scare to get people to capitulate just before we get into the next halving. And just before we get back into quantitative easing.”
Cowen says the king crypto will likely go on a bull run come 2024 upon a change in monetary policy by the Federal Reserve. He believes the Fed will stop raising interest rates by then as well as begin quantitive easing when the Fed injects liquidity into the markets such as by buying bonds.
“Bitcoin has never really experienced interest rates this high, but we also know that the Fed is not going to be able to continue to hike forever. So once we get back to quantitative easing, once we get back to lower interest rates, which I think will come by 2024 at the latest, I think that’s really your bull case for Bitcoin. And not only that, just look at what’s happened with banks recently. That’s another bull case for Bitcoin.”
Cowen says the latest Bitcoin rally is largely caused by altcoin market liquidity flowing into BTC. He predicts once that liquidity dries up, Bitcoin’s price will drop.
“Right now, my best explanation for what’s going on with Bitcoin, I think this is reflected in the dominance, I think there’s a lot of liquidity flow from the altcoin market back to Bitcoin. I think that’s what’s going on right now. And it’s sending Bitcoin higher. But the trick with this is what happens when the altcoin liquidity dries up and can no longer support that? I think that’s when Bitcoin comes back down and we get that scare. We go into 2024 with our rally caps on.”
Bitcoin is trading for $27,516 at time of writing.
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