Benjamin Cowen has updated his Bitcoin price prediction following the latest fed rate cuts. Check out the latest reports about the price of the most important coin below.
New BTC price prediction
Crypto analyst Benjamin Cowen has shared his latest insights on Bitcoin (BTC) as investors begin to anticipate a possible shift in the Federal Reserve’s monetary policies in the coming months.
According to Cowen, when the Fed begins to cut rates, which is expected to happen in March according to CME’s FedWatch Tool, risk assets such as Bitcoin may actually decrease in value.
Cowen shared his thoughts on this matter in a recent strategy session.
“As rate cuts arrive it’s typically not the most bullish thing for risk assets, not because rate cuts in and of themselves are not bullish, but because a rate cut in and of itself is theoretically bullish.
But the problem is not the rate cut itself. It’s why the rate cut is happening. And in this cycle, even more so given where inflation is, you’d have to imagine that if a rate cut were to arrive with inflation as high as it is, there’s probably a reason that that’s happening. Last cycle, we did get sort of a [Bitcoin] mid-cycle top [in September 2019] right around the time that rate cuts arrived…
If you look at things like the S&P 500 or risk assets in general, sometimes they top out well before rate cuts arrive. Sometimes they top out a little bit after they arrive, but in most cases, rate cuts arriving have not been a great thing for risk assets, at least over the short term. When it becomes a good thing for risk assets is once you get to the last rate cut… Because once you get to the last rate cut, it basically implies the market thinks the Fed has done enough and that they have gone back to sufficiently looser monetary policy to get the economy back on track.”
Cowen warns that Bitcoin may test levels within the bull market support band, which is formed by the 20-week SMA and the 21-week EMA.
