Benjamin Cowen, a popular cryptocurrency analyst, claims that Bitcoin (BTC) will make an unexpected big move this year.
Cowen was a guest on the Altcoin Daily channel and stated that the price of Bitcoin will decrease this year. According to the analyst, this drop will also cause a panic sell:
“Right now everyone is happy because of course the price goes up. I think we will see a repeat of what we saw in 2015, 2019. I think Bitcoin will drop again after this year. It will scare a lot of people, but I think it will be a pretty normal thing. And just before the next halving event begins, it will only build a scare to get people to surrender. And that will happen just before we go back to quantitative easing.”
Cowen thinks BTC will likely go on a bull run in 2024 after a change in monetary policy by the US Fed. He believes that by then the Fed will stop raising interest rates and begin quantitative easing once it injects liquidity into the markets.
“Bitcoin has never seen interest rates this high, but we also know that the Fed cannot continue to raise interest rates indefinitely. So, when we get back to quantitative easing, lower interest rates that I think will come by 2024 at the latest, I think it’s really going to turn into a bull season for BTC. And not only that, just take a look at what’s been happening at the banks lately. This is another bull case for BTC.”
Cowen adds that the recent Bitcoin rally was largely due to altcoin market liquidity flowing into BTC. He predicts that the Bitcoin price will drop once liquidity dries up.
“Right now, my best explanation for what’s going on with Bitcoin, I think there is a lot of liquidity flowing from the altcoin market to Bitcoin. I think that’s what’s happening right now. And it sends Bitcoin higher. But the critical point here is what will happen when altcoin liquidity dries up and can no longer support it? I think then Bitcoin will come back and we will have that fear. We will enter 2024 with our rally hats.”
Bitcoin is trading at $27,516 at press time.
You can check the price movements here.