Crypto analyst Benjamin Cowen projected further Bitcoin (BTC) losses amid surging liquidations. Unlike several experts who see a short-term turnaround, Cowen says it won’t happen now and may not follow historical patterns.
No Incoming Rotation From Gold: Analyst
Cowen explained why Bitcoin’s price continues to plunge and why community expectations of sudden capital inflows have been cut short. The price of the crypto leader fell below $81k, marking a 7% decline this week amid rising fears.
Amid the downtrend, experts predicted a rebound as funds flow from gold, silver, and other precious metals. These assets are trading at all-time highs, bolstered by the dollar at four-year lows and Chinese demand.
According to Cowen, when metals surge or decline by 1%, BTC dips by around 6%, making it a bad idea to expect a short-term rotation. Bitcoin has been in a consistent decline since October and will continue to decline, driven by on-chain factors.
He added that, unlike metals, Bitcoin doesn’t top on apathy in most cycles, making the dynamic different. Aside from metals, some commentators argue the bear market would fizzle out because altcoins didn’t rally with Bitcoin, as in most cycles. Cowen also criticized this analysis, citing 2019 data when altcoins failed to rally as projected.
“It’s basically the exact same thing; it’s just that the steady decline that we had back in 2019 is similar to this one, so the decline ends up occurring at the same time as most bear markets. Starting in Q4 of the post-halving year, it goes through the midterm year. So I’m saying that this downturn is similar, and when you compare that… you see slightly lower lows and slightly lower highs. “
Several industry leaders have also backed capital inflows to Bitcoin, citing the need to rally sentiments. Binance announced plans to convert a $1 billion SAFU fund into Bitcoin to support the ecosystem. Since institutional outflows are a major catalyst behind the plunge, large firms backing the asset could become a lifeline.
Tron also made similar commitments to the Bitcoin market after Binance. Last year, heavy traditional capital injection into the market leader spiked sentiments. Notably, treasury firms dominated narratives modeling Strategy’s Michael Saylor, leading to a significant increase in market capitalization.
Source: https://zycrypto.com/bitcoin-bears-arent-done-yet-analyst-warns-massive-bleeding-could-continue/
