If bitcoin touched the $30,000 mark this Monday and seems to be preparing for a new rally, it is not yet the time to rejoice. At least that’s what widely followed crypto analyst Benjamin Cowen thinks. In an interview with Scott Melker, the expert predicted an imminent violent fall in bitcoin as a prelude to the halving expected for April 2024. All the details in this article.
Bitcoin could drop to $15,000 two months before halving
Benjamin Cowen is categorical. He has “seen this happen in previous cycles.” The crypto analyst claims that “what normally happens is that the price of bitcoin halves before the halving”. He predicts that the cryptocurrency which was worth $69,000 last November will see its price drop to $15,000 before April 2024.
In his analysis, Cowen recalls that last summer, bitcoin experienced “a 50% fall before the uptrend really got going”. We can believe that the current drop is already part of the drop that the crypto expert is talking about. However, Cowen believes that we should expect a probable fall at the latest in the two months preceding the bitcoin halving. For altcoins, it will practically be Armageddon.
Some altcoins risk losses of up to 99% from their ATH
Benjamin Cowen says he is concerned about the drying up of liquidity in crypto markets and most risk asset markets. In fact, with the increase in interest rates, the funds that should flow into cryptocurrencies are evaporating day by day. Investors therefore prefer less risky investment solutions.
Cowen subscribes to this logic and expresses his concern for bitcoin because the bitcoin market is no longer really receiving new money. “If there was a lot of new money in the space, why is the total market cap the same as in February and the same as in August 2022? “, he asks. Cowen notes that the money currently flowing into the bitcoin market is coming from the altcoin market thanks to Ethereum. He adds that “the decrease in the purchasing power of altcoins” will therefore affect bitcoin, which has clearly not yet hit bottom during this cycle. And if bitcoin truly drops below 50% of its 2023 ATH, the altcoin market could see up to 99% losses for altcoins.
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