According to well renowned crypto researcher Benjamin Cowen, Bitcoin (BTC) will make a significant jump this year that will shock many people. Cowen expects Bitcoin will fall in price later this year, causing panic selling, in a new strategy session with Altcoin Daily co-host Austin Arnold.
“Everyone is thrilled right now since the price is rising.” I believe we will see the same thing happen again in 2019, as we did in 2015. I believe Bitcoin will fall again later this year. Many people will be scared, but I believe it will be a rather normal occurrence. And it will simply be a fright to induce people to capitulate shortly before the next halving. And shortly before we resume quantitative easing.”
Cowen believes that if the Federal Reserve changes its monetary policy in 2024, the king cryptocurrency would likely embark on a bull run. He expects that by then, the Fed will have stopped rising interest rates and will have begun quantitative easing, which is when the Fed injects money into the markets, such as by purchasing bonds.
“Bitcoin has never truly seen interest rates this high, but we also know that the Fed won’t be able to keep hiking forever.” So, once we get back to quantitative easing and lower interest rates, which I believe will happen by 2024 at the latest, that’s basically your bull case for Bitcoin. Not only that, but consider what has lately happened with banks. That’s even another plus for Bitcoin.”
Cowen believes that the recent Bitcoin rally is mostly due to altcoin market liquidity moving into BTC. He expects that once liquidity runs out, Bitcoin’s price would fall. “Right now, my best explanation for what’s going on with Bitcoin is that there’s a lot of liquidity movement from the altcoin market back to Bitcoin, and I think this is reflected in the dominance.”
That’s what I believe is going on right now. And it’s pushing Bitcoin up. But what happens when the cryptocurrency liquidity runs out and the system can no longer support that? I believe that is when Bitcoin will fall again and we will experience the fright. We’ll be wearing rally caps in 2024.”
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