Crypto analyst Benjamin Cowen is predicting a potential downturn for Bitcoin and other cryptocurrencies in the third quarter of this year. He bases this prediction on historical patterns and some economic indicators.
Past Performance Suggests a Summer Slump
Cowen points out that Bitcoin has shown similar dips in previous years around this time. He notes that while Bitcoin hit new all-time highs recently, the overall crypto market cap hasn’t followed suit, creating a divergence that he finds concerning. He believes this divergence, combined with past trends, makes a Q3 pullback likely.
Macroeconomic Factors Add to Concerns
Cowen also highlights potential macroeconomic factors that could contribute to market uncertainty. He mentions that initial jobless claims tend to rise during the summer months, potentially impacting investor sentiment and causing market volatility. While he doesn’t see this as a major problem unless claims hit 300,000, he believes it could still add to the pressure for a correction.
But It’s Not a Sure Thing
Cowen acknowledges that his prediction isn’t guaranteed. He admits the possibility that the crypto market could defy historical trends and continue its upward trajectory. Essentially, while he sees a pullback as probable, it’s not a certainty.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before making any investment decisions.
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