Popular crypto analyst Benjamin Cowen has warned that Bitcoin is likely to face a ‘final capitulation’ event by the end of 2022. According to the expert’s Bitcoin predictions, the BTC price will struggle with corrections over the next few years.
Benjamin Cowen expects more corrections for Bitcoin by the end of the year
Benjamin Cowen, founder of blockchain firm CryptoVerse, has suggested that Bitcoin will see more corrections in the coming months. Speaking in an interview with Kitco News on September 8, Cowen stated that the correction will reflect the historical price movements of Bitcoin, especially after reaching the ATH level. Notably, Bitcoin has corrected almost 70% from the $69,000 ATH price it recorded in November last year. Some of Cowen’s comments on historical data include:
Comparing the various bear markets, we are currently spending the last months down around 70% from their all-time high. According to the data, we usually get this final capitulation at the end of the year or the beginning of the next year.
The impact of Fed policy
Another factor that needs attention, according to Cowen, includes the Fed’s measures to contain rising inflation. The crypto analyst says investors should be wary of rate hikes in a weak economy. Cowen also stated that Fed activity is partially responsible for disrupting the Bitcoin bull market. He added that the institution is a key factor in maintaining its policies.
Meanwhile, amid Cowen’s forecast, Bitcoin has recorded almost 10% gains in the last 24 hours. Later, it also had the opportunity to exceed $ 21,100. At the same time, the Bitcoin rally pushed the overall crypto market to reclaim $1 trillion in capitalization. We have covered the details and Binance CZ’s ‘bull trap’ explanations in this article from Kriptokoin.com.
A successful Ethereum merger that will impact the crypto market
Furthermore, Cowen noted that the upcoming upgrade in the Ethereum network will be a key growth catalyst for the market overall. He suggested that if the upgrade, scheduled for mid-September, is successful, it will build confidence in the market. Cowen says the anticipated Ethereum update will be the catalyst the market needs:
This is a very important event for the entire crypto space because I think if it goes according to plan and there are no major disruptions, it could provide a lot of confidence in the asset class as a whole at a time when we really need it. If you think about all the bad things happened in crypto this year… I think there are a lot of people who don’t trust cryptocurrency right now.
Ethereum is currently trading at $1,700. Bitcoin gained 10% today, while ETH followed this momentum with 4.5%.
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