A widely followed crypto analyst says that Bitcoin (BTC) will skyrocket to its market top after the Federal Reserve cuts interest rates.
In a new video update, crypto trader Benjamin Cowen tells his 929,000 YouTube subscribers that the Fed loosening monetary policy will serve as a catalyst for the top crypto asset by market cap to surge to new heights.
“I’m arguing that a rate cut, while it can be good for the markets as long as the macro backdrop is holding up strong, it still won’t necessarily be lower than the neutral rate and therefore I think that liquidity will flow back into Bitcoin and that could be Bitcoin corresponding to a break of new all-time highs.”
Cowen goes on to note that the flagship digital asset could repeat the same pattern it did in 2017 and spark a rally to its theoretical market cycle top.
“In 2017, Bitcoin had this drop to the 20-week SMA (simple moving average). It tagged it and then it just slowly went up into late September and then October, Bitcoin had a major breakout to all-time highs.
That very well could be how this plays out. just kind of a slow move up by Bitcoin back near the all-time highs and then when it breaks out, you might get that final parabolic rally or that final move into the theoretical market cycle top.”
The crypto king is trading for $116,105 at time of writing, while the next Federal Open Market Committee (FOMC) meeting is slated to take place on September 16th.
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