Bitcoin’s September Slump and Altcoin Revival Predictions
A prominent cryptocurrency strategist is reiterating his prediction of a significant downward movement in Bitcoin (BTC) for the current month.
During a recent strategy discussion, analyst Benjamin Cowen suggested that Bitcoin may experience negative performance in September.
“September traditionally proves to be a challenging period for the cryptocurrency market. Bitcoin, in particular, has historically exhibited a tendency to underperform during this month, with returns often dipping into negative territory, faring worse than any other month.”
Cowen also predicts that Bitcoin could undergo a decline exceeding 10% from its current valuation over the course of this month. He previously cautioned that Bitcoin might reach $23,000 in September, drawing on past trends.
As of the time of writing, Bitcoin is being traded at $25,789.
Furthermore, Cowen envisions a scenario in which the broader altcoin market may experience a revival. According to his analysis, a combination of macroeconomic factors could reinvigorate the altcoin markets in the coming year.
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“Volatility typically surges in the year of a Bitcoin halving, coinciding with a presidential election year that brings increased uncertainty. Additionally, we find ourselves in an unprecedented cycle of interest rate hikes, which could lead to noticeable labor market impacts by the end of this year or early next year.”
Cowen suggests that if the labor market exhibits signs of weakness concurrently with declining inflation, possibly indicating an impending recession, and with the added factor of an election year where incumbents may seek to maintain their positions by implementing looser monetary policies, there could be political pressure to reduce interest rates. In his estimation, this action may lead to a return of quantitative easing during the election year, similar to what occurred in 2020, historically associated with improved performance in the altcoin market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
