Bitcoin, the world’s most popular cryptocurrency, is currently facing a number of challenges that could affect its future performance. First, popular cryptocurrency analyst Benjamin Cowen warns that Bitcoin is poised for a correction before the next halving scheduled for next year. According to Cowen, Bitcoin showed similar behavior in the months before the previous halving. Meanwhile, according to another analyst, the latest speech from Fed Chairman Jerome Powell has sparked concerns about a potential banking crisis that could kick off the next Bitcoin bull market. Here are the latest statements by analysts about Bitcoin…
Benjamin Cowen warns Bitcoin investors
Popular cryptocurrency analyst Benjamin Cowen warns that Bitcoin (BTC) will go through a difficult period before experiencing the bullish period that usually follows the halving. According to Cowen, Bitcoin will decline in the coming months, leading to the halving planned for next year. Cowen states that Bitcoin has exhibited similar behavior in the months before previous halvings. He believes altcoins will be more severely affected than Bitcoin if there is a market correction.
Cowen states that illiquid assets will be more affected in a correction scenario than highly illiquid ones. Whenever there is a correction, the liquidity in the altcoin market drops significantly. The market is currently in a Bitcoin season and Bitcoin has outperformed all other cryptocurrencies in the top 50 by market cap over the past 60 days. Cowen predicts that before the halving, Bitcoin will experience another scare late this year or early next year.
Michael van de Poppe: The bull market may begin
Michael Van de Poppe, founder of EightGlobal, believes that banking crises could trigger the next Bitcoin bull market. In his analysis, Poppe noted that the latest speech by Fed Chairman Jarome Powell caused mainstream bank stocks to plummet despite the President’s bullish approach and his assurances on the markets. Although Powell argued that the banking system is solid and resilient, stocks of many banks fell after his speech.
Poppe observed that the shares of some regional banks collapsed hours after Powell’s speech. Increasing uncertainty among banks and a growing tendency to distrust regulator’s assurances could spell doom for mainstream markets. Poppe’s analysis showed that bank stocks and Bitcoin markets are not moving in the same direction. According to him, the current scenario does not look good for the US banking sector.
Transaction fees increase in BTC
Meanwhile, Bitcoin’s Blockchain network has experienced a significant increase in transaction fees in recent days. According to CryptoFees, the total daily transfer cost on the BTC network was $380,000 on April 23, 2023. This metric marked a significant increase in wages, surpassing $4 million in recent days. The increase in transaction fees on the BTC network is attributed to Bitcoin Ordinals. The data shows that the recent increase in transaction fees on the BTC network is due to the increase in Ordinals activity.
