Crypto analyst Benjamin Cowen is predicting a potential crash for the Ethereum-to-Bitcoin (ETH/BTC) price ratio, drawing parallels to the 2016 market cycle.
A Look Back at 2016
Cowen points out that in 2016, ETH/BTC saw a significant drop in June, hitting a low of 0.015 BTC. This year, the pair reached a low of 0.045 BTC in May, about a month earlier.
What Could Happen Next?
Cowen believes that if ETH/BTC follows the 2016 pattern, we could see a rally to 0.056 BTC in August, followed by a dip back to 0.045 BTC in September. This potential dip could be triggered by a rate cut from the Federal Reserve.
A Potential Crash?
If the Fed cuts rates in September, Cowen predicts a sharp decline for ETH/BTC, potentially reaching its cycle lows by the end of the year. In 2016, ETH/BTC dropped to 0.00733 BTC before rebounding to record highs in 2017.
What Does This Mean for Investors?
Cowen’s analysis is just one perspective, and investors should always do their own research before making any investment decisions. The crypto market is volatile, and prices can fluctuate rapidly.
