The expert changed his mind after a spike in inflation in the United States — the publication of June data showed that the year-on-year figure reached its high in 40 years

Analyst Benjamin Cowen backs down on his prediction for bitcoin at $100 000

14.07.2022 - 10:30

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1 min

What’s new? Cryptocurrency analyst Benjamin Cowen has abandoned his suggestion that the price of bitcoin could reach $100 000 by the end of 2023. According to him, as long as the US Federal Reserve System (Fed) continues to pursue its tight monetary policy to fight inflation, the first cryptocurrency’s rate will decline.

Benjamin Cowen’s video

What else did Cowen say? The analyst cited a bull market in the US dollar as another factor negatively affecting BTC. He noted that as long as the trend continues, bitcoin, like other high-risk assets, will remain under selling pressure.

US inflation data released on July 13 showed that the consumer price index rose by 1,3% in June compared to the previous month. As a result, the annual inflation rate reached a forty-year high of 9,1%.

Earlier, Cowen spoke about an on-chain indicator that suggests that bitcoin is on the verge of entering the accumulation phase. According to him, the Market Value to Realized Value (MVRV) Z-score metric has a “fairly decent track record” for determining BTC accumulation zones. He explained that a drop in this indicator below zero is followed by the bottom of the market cycle.

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