Cryptocurrency nightmare could become reality in coming months, says trader

Benjamin Cowsa cryptocurrency trader with almost 787,000 followers, predicts a bleak scenario for cryptocurrencies for the rest of 2023. In a recent video on YouTube, Cowen indicated that altcoins could face difficulties to close out the year, repeating patterns that have been observed in the years leading up to the crisis. Bitcoin halving.

The trader and investor also warns that despite Bitcoin rising slightly this month, the market’s top cryptocurrency could end the month in the red, just like it did in 2019, the year before the halving.

“There is a good chance that cryptocurrencies, and especially altcoins, will emerge [qualquer criptomoeda que não seja o Bitcoin]will have problems for the rest of the year, which has already happened in the years before the halving.”

Benjamin Cowen BTC Year to Date
Benjamin Cowen BTC Year to Date

Altcoins will have a hard time in the coming months

According to Cowen, the altcoin market has historically faced difficulties in the years leading up to the Bitcoin (BTC) halving.

With the next halving scheduled for April 2024, where miner rewards will be halved, Cowen believes the current scenario is consistent with previous patterns.

He emphasizes that such market behavior is common even when there are no recessions or threats of recessions.

The analyst also commented on the recent performance of several altcoins, including Ethereum (ETH), Cardano (ADA), Polkadot (DOT), Solana (SOL) and Avalanche (AVAX), all of which have recorded declines this month.

Other cryptocurrencies such as Dogecoin (DOGE), Polygon (MATIC) and XRP were also mentioned, with XRP posting a modest increase after a sharp decline in the previous month. Litecoin (LTC), in turn, made a slight recovery after a significant decline.

“Ethereum (ETH) fell 3.31%. Cardano (ADA) is down almost 4% this month. Polkadot (DOT) is down almost 6%. Solana (SOL) fell by half a percent. Avalanche (AVAX) is down 11% this month. Many of these altcoins have fallen this month.

Take a look at Dogecoin (DOGE). It fell by 3%. See Polygon (MATIC). It fell by almost 5%. Last month it was down almost 27%, compared to say ADA last month… down 16% or DOT last month, which was down 16% last month, or Ethereum last month… down 11%. So yes, XRP is available this month. After an increase, a fairly large decrease was also necessary last month. Basically, it’s just about reconstructing many of the gains made after the Ripple vs SEC news. Litecoin (LTC) is up slightly this month, 1.88%, after falling almost 31% last month.”

Benjamin Cowen altcoins
Benjamin Cowen altcoins

A cryptocurrency nightmare could become reality

Cowen is not the only analyst with a pessimistic forecast for the sector, as after the President of the US Central Bank (Fed) indicated that interest rates will remain high for longer, cryptocurrencies are facing a ‘nightmare scenario’.

“Borrowing costs will remain high and refinancing will be a nightmare for cryptocurrency companies”Oanda analyst Edward Moya told Coindesk following the Fed’s decision to keep interest rates at the highest level in just over two decades.

The Fed’s tight policy could impact cryptocurrency prices, according to several industry analysts, who argue that the US stock and interest rate markets have broken through some very important levels, and that reflexivity from here could take control of the bearish position can take over.

“This Macro Move Could Infiltrate the Cryptocurrency Markets”

Based on Cowen’s analysis, cryptocurrency investors may need to prepare for a potentially challenging end to the year for altcoins, especially in light of historical patterns repeating ahead of the halving.

“Bitcoin has tested the bull market support range and I know many people are hopeful that it will close out the green month and end the bad run, but I want people to be aware that in September we 2019 has seen something very special. similar where he recovered for the first few weeks and then slowly disappeared. Please know that this also happened in 2019 and we ended up missing the last week of the month.”

Source: Live Coins