Bitcoin (BTC) enthusiasts and investors are carefully monitoring the ever-fluctuating cryptocurrency market as it approaches the highly anticipated halving event in April 2024.
Benjamin Cowen, a well-known crypto analyst with a significant following, has expressed concerns about the potential for a significant price drop in Bitcoin ahead of the upcoming halving.
In a recent interview with Scott Melker, Cowen examined historical patterns surrounding the price movements of the alpha cryptocurrency ahead of halving events.
Although he did not explicitly predict a 50% decline, he emphasized that historical data shows that such a decline is out of the question. Looking at past cycles, Cowen revealed that BTC often experienced a sharp decline in value before the halving event.
In his words, "Normally what happens is Bitcoin gets halved (in price), and then people say, 'Oh, that's what halving means.'"
Historical Example: Price Behavior Before Halving
Cowen pointed to previous market cycles, particularly the decline that occurred before and during the pandemic, to illustrate his point. Each time, the value of the king coin dropped by approximately 50% before starting its extraordinary bull run.
The commonality of these declines, especially those that began in the summer months, led Cowen to consider whether the current market could still be within the bounds of a 50% decline. If so, it could potentially drop to $15,000.
Cowen's concern about the impending BTC price drop is not unfounded. One of the key factors contributing to this concern is the decreasing liquidity in the cryptocurrency market and various risk asset markets.
As liquidity decreases, assets like Bitcoin may become more susceptible to sharp declines. This is a sign that has historically preceded significant market moves, and Cowen believes this time could be no different.
Bitcoin's Price Amid Social Unrest
On the other side of the Bitcoin spectrum, vocal crypto advocate Max Keizer shared his thoughts on the cryptocurrency's future price trajectory. Many Bitcoin enthusiasts are wondering when Bitcoin will reach the legendary $220,000 level.
But Keizer points out that these levels are often reached “AFTER social unrest and social collapse have caused irreversible damage.”
He noted that the world is currently witnessing widespread social unrest in many major cities, resulting from geopolitical unrest in many countries. Keizer's warning is clear: People, especially Bitcoin holders, should be prepared for the possibility of high prices coinciding with an economic collapse.
The crypto market is as unpredictable as ever; Bitcoin is currently trading at $28,582 via CoinGecko and is up 1.8% in the last 24 hours and 5.7% in the past week.
As the community eagerly awaits the 2024 halving event, analysts like Cowen and Bitcoin advocates like Keizer offer important insights and cautions for seasoned investors and newcomers alike, reinforcing the need for cautious optimism in the ever-evolving world of cryptocurrencies.
