Analyst Benjamin Cowen is suggesting a potentially wild scenario for Bitcoin’s price. He’s comparing Bitcoin’s recent performance to that of the Invesco QQQ ETF, a Nasdaq index fund, shortly after its launch in 1999.
A Historical Parallel?
Cowen points out that the QQQ ETF, tracking the top 100 non-financial Nasdaq companies, saw a massive 150% increase in its first year. He then draws a parallel to Bitcoin’s price action since the launch of a Bitcoin spot ETF. While acknowledging it’s a long shot, he notes some striking similarities in the timelines and price movements.
Specifically, Cowen highlights that both the QQQ ETF in 1999 and Bitcoin’s recent price action show a significant rise within a similar timeframe. He suggests that if this trend continues, Bitcoin could reach $120,000.
The Catch: A Potential Crash?
But here’s the crucial point: Cowen emphasizes that this comparison is “very dubious.” He reminds viewers that after the QQQ ETF hit its peak, it experienced a significant drop. If Bitcoin follows a similar pattern, a substantial price correction – potentially a 48% drop – could be on the horizon.
The Bottom Line
Cowen’s analysis is purely speculative. He presents it as a fascinating possibility, not a prediction. He encourages viewers to consider the potential implications if Bitcoin reaches $120,000 and the possibility of a subsequent price drop. Currently, Bitcoin is trading around $101,484. It’s important to remember that this is just one analyst’s perspective, and investing in cryptocurrency carries significant risk.
