The crypto markets displayed diverse price actions ever since the beginning of 2022 & displayed a contrasting behavior to what was being predicted. Considering the latest price action, the Bitcoin (BTC) price marked the very much-needed 10% jump during the previous trading day.
While the market sentiments are coiling up, one of the well-known analysts believes the asset is due for a final capitulation phase before the end of 2022.
Benjamin Cowen, the founder of blockchain firm, cryptoverse, advocates that the star crypto is due for a significant drop, this year. In a recent interview, Cowen noted the correction would mirror historical price movements that it underwent after it smashed an all-time high.
“Comparision of the various bear markets, you know we spend a few months sitting at about 70% down from the all-time high, and then it’s like at the end of the year, or early the following year, we get that final capitualtion,”
FED Activity Responsible for Disrupting the Bitcoin Bull Market
The analyst here believes that raising inflation may be the most important reason behind his bearish claim. The Fed may continue to undertake stringent action to curb the raising inflation which is cemented at a 20-year high level. The hike in the interest rates may eventually impact the stock market, which could influence the crypto space as well.
On the other hand, the Ethereum Merger is also fast approaching, which is expected to be a game-changer for the crypto space. He hopes the confidence in the market may pile up if the Merger accomplishes successfully without any major technical flaws.
“It’s a very important event for the entire crypto space because if it goes according to plan and there are no major hiccups, then I think it can provide a lot of confidence in the asset class as a whole at a time when we really need that if you think about everything that’s bad, that’s happened in crypto this year,”
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