Bitcoin Could Fall Further, According to Analyst Benjamin Cowen
Crypto strategist Benjamin Cowen believes that Bitcoin could experience a further decline, even after already correcting by over 15% from its 2023 high. Cowen points out that the current downturn aligns with a pattern that occurs every four years, known as the “secondary scare” in the cryptocurrency market.
Key Points:
- The S&P 500 tends to experience a correction in August or September of its pre-election year.
- Bitcoin has historically dropped between 39% and 83% during previous “secondary scares.”
- In 2019, Bitcoin dropped 61% during the secondary scare.
- In 2015, Bitcoin experienced a 40% drop.
- In 2011, Bitcoin saw an 82.5% drop.
Cowen outlines three potential scenarios for how low Bitcoin could fall based on historical precedent. A 40% drop would put Bitcoin at $17,500, while a 61% drop would bring it to around $11,400. However, Cowen does not believe that Bitcoin will drop as low as 80%. Currently, Bitcoin is trading at $26,423.
Hot Take:
While Bitcoin has already experienced a significant correction, Benjamin Cowen warns that there could be further downside ahead. Based on historical patterns and previous “secondary scares,” Bitcoin could potentially drop to $17,500 or even $11,400. However, Cowen does not anticipate a drop as severe as 80%. Crypto investors should closely monitor the market and be prepared for potential volatility in the coming months.
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