Analyst Benjamin Cowen said the new US inflation data, scheduled for release this week, could point to an ongoing bear market for Bitcoin (BTC).
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Cowen believes that the US Federal Reserve will continue its fiscally hawkish monetary policy until inflation falls, which in turn will affect the price of Bitcoin. Şahin monetary policy has a structure that supports high interest rates.
Additionally, the analyst hopes that BTC will reach $100,000 by 2023, but adds that he does not believe this is a possible scenario at this time. Stating that the dollar is in a bull market, Cowen states that when Bitcoin falls, the dollar normally rises and vice versa.
“As long as the dollar remains in this macro bullish trend, it can be assumed that Bitcoin will come under some selling pressure here. And risk assets in general, not just Bitcoin [baskı altında].
The crux of all this is that our inflation data is due this week and will likely be higher than last month. So from year to year, we’ll probably look at this and say, ‘Well, inflation has not inevitably peaked.
If that’s the case, then there’s a good chance the S&P hasn’t bottomed out, and if that’s the case, there’s a good chance that Bitcoin is still in a bear market.”
Bitcoin is trading at $19,836 at the time of writing. The top-ranked cryptocurrency by market cap has lost 1.32% compared to last week.
The U.S. Bureau of Labor Statistics will release updated Consumer Price Index data today.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.