In a pivotal move, Benjamin Cowen, a distinguished crypto analyst, has sounded a note of caution regarding a possible sharp downturn in Bitcoin’s value before the impending halving. In a recent interview with Scott Melker, Cowen delved into the historical trends surrounding Bitcoin’s price movements leading up to halving events.
While not explicitly forecasting a 50% drop, Cowen pointed to historical data indicating that such a decline is within the realm of possibility. He emphasized that BTC has historically witnessed a significant dip in value before a halving event, stating:
What normally happens is Bitcoin halves [in price] before the halving, and then people are like, ‘Oh, well, that’s what the halving meant.
Backing his assertion, Cowen cited previous market cycles, notably the downturn preceding the pandemic and the one prior to that. On both occasions, Bitcoin’s value plummeted by roughly 50% before embarking on a remarkable bull run.
Given the recurrence of these drops, particularly those initiated in the summer, Cowen pondered whether the current market might still be within the bounds of a 50% decline. If so, Bitcoin could potentially see itself trading around the $15,000 mark.
Cowen’s apprehension regarding a possible BTC price drop is not without basis. One of the critical factors heightening this concern is the diminishing liquidity within the cryptocurrency market and various risk asset markets. As liquidity dwindles, assets like Bitcoin become more vulnerable to sudden declines, a sign that has historically foreshadowed significant market movements. Cowen believes that this time may be no different.
On the flip side of the Bitcoin spectrum, vocal crypto advocate Max Keiser shared his perspective in X post on the cryptocurrency’s future price trajectory. Many have been eager to know when Bitcoin might touch the elusive $220,000 mark.
People ask ‘When’ $220,000 for #Bitcoin ?
— Max Keiser (@maxkeiser) October 17, 2023
Keep in mind, #Bitcoin trades at these levels AFTER social unrest and societal breakdown are irreversibly causing havoc.
You have to prepare for higher prices AND economic collapse.
Good luck!
With the recent social unrest in major cities worldwide, driven by geopolitical instability in several countries, Keiser has warned individuals, particularly Bitcoin holders, to prepare for higher prices during economic turmoil.
Bitcoin is presently trading at $28,388 in the notoriously unpredictable crypto market. This marks a 0.24% gain in the last 24 hours and a 4.22% increase over the past week. As the community eagerly counts down to the 2024 halving event, analysts like Cowen and Bitcoin advocates like Keiser offer crucial insights and cautions for seasoned investors and newcomers alike, underscoring the need for cautious optimism in the ever-evolving world of cryptocurrencies.
