Benjamin Cowen, one of the most respected analysts in the world of cryptocurrencies, made statements in his latest analysis that are of great interest to investors and followers of the Bitcoin market.
Cowen has assessed the potential impact of macroeconomic changes on cryptocurrency markets.
Benjamin Cowen began by assessing the recent performance of Federal Reserve Chairman Jerome Powell. Noting that many market participants blame Powell for the current economic problems, Cowen said: “However, looking back over the past few years, Powell has actually successfully managed a very difficult period. The real risk begins in the period after that.”
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According to the analyst, with Powell’s departure, we are entering a world where institutional credibility is called into question and where much greater uncertainty reigns. Cowen added that the impact of this loss of institutional trust on alternative assets like Bitcoin will be critical.
Cowen, when assessing Bitcoin price movements, mentioned that looking at charts is not enough and that the Fed’s interest rate policy and its fight against inflation remain the main determinants. According to the analyst, people starting to lose trust in traditional financial institutions could reinforce Bitcoin’s “safe haven” narrative in the long term. Cowen said markets are currently in a transition phase and investors should be wary of liquidity crises. He predicts that Bitcoin will be driven more by new Fed policies and changes in global inflation, rather than short-term fluctuations.
*This does not constitute investment advice.
