A popular crypto analyst says he has doubts that Bitcoin’s (BTC) massive predictions for the coming year can come to pass.
In a new interview on InvestAnswers, widely followed crypto trader Benjamin Cowen offers his take on a prediction that Bitcoin could surge more than 1,000% from current prices by 2023.
At the end of last month, venture capital investor Tim Draper done a forecast that Bitcoin will hit $250,000 next year.
Cowen says that he no longer believes that Bitcoin can reach the six-figure price range in the next 18 months.
“Once upon a time I would have liked to believe that 2023 would have been the year we hit those, maybe $250,000 would always be too high, I was thinking more $100,000 or something for 2023.
Now, admittedly, I’m a little more skeptical about that idea, especially given the force with which the Fed pivoted and went in the completely opposite direction in the last six months.
I also look at other things like social stats and follow new subscribers to crypto YouTube channels. I see the audience for this kind of thing, and everything is on a downward trend right now. If people have a hard time buying gasoline, it will be even harder for people to buy Bitcoin.”
Cowen says that even if retail investors become extremely bullish on BTC, it may not be enough to propel Bitcoin to $250,000 by next year.
“Really high overall retail sentiment is still needed to see risky assets like Bitcoin finally hit $250,000. I am struggling to see how we will get to a quarter of a million dollars next year, especially during a period of high inflation. You can point to the 1940s and 1970s, the second peaks of high inflation, the stock market did well. But during the first spike, the stock market fell until inflation peaked.
That would be a huge turnaround for Bitcoin to hit a quarter of a million. [dollars] in the next 18 months, so I would say probably not in the next 18 months.”
Instead of a monumental rally, Cowen sees a choppy and unexciting Bitcoin market for the next two years.
“I’m looking at us ending this bear market sometime this year and then going into an accumulation phase like we did in 2019 and in 2015 and then slowly getting ready for the next Bitcoin halving and at that point it’s likely that you are looking at the Fed finally lowering interest rates and hoping that inflation will come back down if it hasn’t already.”
Check price action
Don’t miss a beat – Subscribe to receive crypto alerts by email directly to your inbox
Follow us Twitter, Facebook Y Telegram
Browse Hodl’s Daily Mix
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal