Crypto analyst Benjamin Cowen says the release of new US inflation data could hint at a continued bear market for Bitcoin (BTC).
Cowen, the famous crypto analyst with 756,000 YouTube subscribers on his channel, told them that he believes the U.S. Federal Reserve will remain financially hawkish until inflation comes back down.
Cowen’s BTC Forecasts
Cowen, who has been forecasting the future of Bitcoin for years now says that he used to hope this coin would hit $100,000 by 2023 but doesn’t think it’s likely going forward.
The US dollar has been in a bull market lately, and it’s helped by the fact that when Bitcoin goes down people traditionally stock up on dollars.
“As long as the dollar remains in this macro bull trend, I think it’s safe to assume that Bitcoin’s going to remain under some selling pressure here. And not just Bitcoin, but in general risk assets.
The main point of all this is to say we have inflation data coming this week, and it’s likely going to be higher than it was last month, and therefore, when you look at it year over year, we’re likely going to look at this and say, ‘Well, inflation hasn’t necessarily peaked.’
If that’s the case, then the S&P — [there’s] a good chance it hasn’t necessarily bottomed, and if that’s the case, there’s a good chance Bitcoin is still in fact in a bear market.”
Bitcoin Price Action
Bitcoin is down 2% in the past 24 hours, trading at $19,414 at the time of writing.
The latest data on consumer prices is set to be released by the U.S Bureau of Labor Statistics today and we’re waiting with bated breath.
Analysts are expecting to see an annualized inflation rate of 1.7%, which is a pick up from last month’s 1.3%. While this might not seem like much, it could be enough to keep the Fed on its toes and continue raising interest rates. And that’s something that’s bad for Bitcoin.
So there you have it. Despite the recent rally, it looks like Bitcoin could be in for more tough times ahead thanks to macroeconomic factors. Keep an eye on the inflation data this week and see if it has any effect on the markets.