Cryptocurrency analyst Benjamin Cowen has raised an alarm regarding the potential fate of Bitcoin (BTC), as the leading digital currency struggles to surpass the $100,000 mark. In a recent video shared with his 858,000 YouTube subscribers, Cowen noted that the increasing yield on the US Treasury 10-year could have a bearish effect on Bitcoin’s trajectory.
Drawing parallels with the crypto market situation in the latter half of 2023, Cowen explained that Bitcoin could experience a similar downturn. During this period, Bitcoin nose-dived below a range low of $30,000 and remained restrained for several weeks, leading to a weakened market until the crypto found demand below $25,000.
Cowen cautioned his followers, saying, “watch the 10-year yield – if it keeps going up it’s going to be a headwind for Bitcoin.” He further added that the market could expect a dip of up to 28% from the current level if Bitcoin’s price action replicates that of 2023.
Under such circumstances, Cowen suggested that Bitcoin could stagnate around $88,000-$89,000 for a while before retreating back to perhaps $70,000 in search of support.
The future of Bitcoin, according to Cowen, hinges on its performance around the $100,000 threshold, which will likely determine the cryptocurrency’s short-term trajectory. He asserted, “$100,000 is going to be kind of the line in the sand. If Bitcoin gets rejected again at $100,000 and it comes back down here and gets below $90,000, then this 2023 outcome is more likely. It just follows what the S&P [500 index] did and the Russell [2,000 index] did and gives back those post-election gains in the short term.”
As of the time of writing, Bitcoin is trading at $96,900. The crypto king’s struggle to crack the coveted $100,000 mark continues, while investors and analysts alike keep a close eye on market trends and potential influencing factors. Cowen’s warning serves as a stark reminder of the volatility and unpredictability that continue to characterize the crypto market, reinforcing the importance of informed decision-making in this high-stakes domain.
