Benjamin Cowen, a prominent crypto strategist, has recently shared insights on the crypto market’s potential trajectory, emphasizing the Federal Reserve's role in influencing Bitcoin's performance. According to Cowen, Bitcoin has been on a gradual decline since March, primarily due to the Fed’s strict monetary policies and its hesitance to implement quantitative easing.
Cowen highlights that for the crypto market to experience substantial growth, the Fed would need to ease its monetary stance. He anticipates that the Fed might start loosening its policies by September, which could significantly impact Bitcoin and other cryptocurrencies. However, Cowen is cautious, suggesting that the market might remain subdued throughout 2024 if the Fed maintains its current approach.
The strategist points out that Bitcoin’s recent downturn is closely linked to market uncertainty over when and how the Fed will adjust interest rates. This uncertainty contributes to volatile market behavior, with fluctuating expectations leading to Bitcoin’s erratic price movements.
As investors await clearer signals from the Fed, Cowen's analysis underscores the importance of monetary policy in shaping the future of the crypto market.
August 2024, Cryptoniteuae