Popular crypto strategist Benjamin Cowen warns that Bitcoin may fall a few more steps from current levels. In a new update, Cowen tells his 784,000 YouTube subscribers that Bitcoin is likely to remain between $12,000 and $35,000 through 2023 ranges, as it is so beautifully called.
If Cowen’s prediction comes true, Bitcoin could fall as much as 50 percent to the bottom of the range he specifies.
What can we expect?
If you ask Cowen, a relatively uneventful end to 2023 is in store for Bitcoin and the financial markets. Prices continue to ping-pong back and forth between $12,000 and $35,000. Although a fall to the price of $ 12,000 in a negative way would be quite spectacular.
There are probably very few people right now who expect Bitcoin to fall back to $12,000 this year. There would have to be a massive recession for that to happen.
With an unemployment rate of 3.4 percent in the United States, the chance of a huge recession seems small. Although most analysts agree that a recession is coming in the coming months.
In that respect, it makes sense that Cowen expects little or no spectacle for the rest of 2023. There is a lot of uncertainty at the moment and that does not seem to change in the short term, making it difficult for the market to really to choose direction.
Negative Sentiment
Cowen actually expects a lower price to be the most logical outcome of 2023 given current conditions. He notes that sentiment is currently negative and points in particular to the high likelihood of a recession.
“If Bitcoin continues to climb this year, I expect it to do so in the first half of the year, as the second half is likely to be dominated by the likelihood of a recession,” said Cowen.
The analyst also sees that Bitcoin’s price explosions are becoming less and less impressive every cycle. That in itself makes sense. As the asset grows, more and more capital is required to generate the same type of profits.
We are now getting to a point where Bitcoin is really so big that it is unlikely that the price will just flip 10 times. Those kinds of profits can certainly not be ruled out, but that requires a huge amount of capital.