Crypto analyst Benjamin Cowen says the U.S. Federal Reserve will play an integral role in deciding when the next Bitcoin (BTC) bull market kicks off.
In a new strategy session, Cowen tells his 786,000 YouTube subscribers that BTC is currently flashing a mixed bag of indicators.
According to Cowen, some metrics suggest the top crypto asset hit its bottom already and others indicate it has further to drop.
“You have to be open-minded. Is it a double bottom, is it a higher low, or is it a lower low? And just for the record, remember last cycle, it was a higher low… [The] cycle before that, it was a double bottom. What is it this cycle?
Last cycle it was a higher low into a recession, but remember, the recession was really short-lived because we’d just printed $6 trillion. So again, I don’t think the Fed’s going to print as quickly this time, and therefore you do sort of run the risk of potentially a lower low, but it just depends on how aggressive the Fed is, right? How much do they mean ‘higher for longer’? Are they willing to hold rates there even in the midst of markets struggling?”
At a Fed-sponsored economic policy symposium in Jackson Hole, Wyoming last week, Fed Chair Jerome Powell said inflation was still too high and that the central bank was “prepared to raise rates further if appropriate.”
BTC is trading at $26,142 at time of writing. The top-ranked crypto asset by market cap is down more than 0.5% in the past 24 hours.
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