The business cycle of cryptocurrencies is as unstoppable as it is in traditional markets. Analyst Benjamin Cowen decided to look at this phenomenon.
Unfortunately, what he found out doesn’t make people happy. Bitcoin halving need not be heavenly salvation.
Benjamin Cowen: Bitcoin separated from the cycle!
The cryptocurrency business cycle has always been closely linked to Bitcoin halving. After 2012 and 2016, it experienced an exponential rise in its price. That’s why many investors believe the same thing awaits us this or next year.
But Cowen based his effort to find the cycle on the technical side of the price chart. Indeed, if we look at the early years, we notice the large and long slumps alternating with sharp shots to the sky. As the market capitalization grows, this cycle also extends.
Cowen comes up with the theory that we will be in the accumulation phase until 2022. The good news is that his realistic prediction for next years counts on a capitalization of over $ 11 trillion (check market cap in our daily market overviews) . The price of one BTC is supposed to be over $ 100,000. However, we will first have to go through an even greater and unprecedented decline.
The reasons for this are the great uncertainty in traditional markets caused by the new type of coronavirus. Investors, in his opinion, must first find out what they want, then put their stakes.