The cryptocurrency market has been active since the beginning of 2022 and has behaved contrary to forecasts. Considering the latest price action, Bitcoin (BTC) price marked the much-needed 10% gain on the previous trading day.
Bitcoin bear market could be on the table by the end of 2022
A prominent crypto analyst says that Bitcoin will enter a final stage of capitulation before the end of 2022. Popular crypto analyst Benjamin Cowen argues that Bitcoin will be shaken by a significant drop this year. In a recent interview, Cowen stated that the correction would reflect the historical price movements he experienced after hitting the ATH level:
Comparing the various bear markets, you know, we spend a few months sitting about 70% down from the all-time high, and then at the end of the year or the beginning of the next year, we get this final capital.
FED decisions are responsible for disrupting the bull market
In this regard, the analyst believes that increasing inflation may be the most important reason behind the alleged decline. The Fed may continue to take drastic measures to rein in rising inflation, which is pegged at a 20-year high. The rise in interest rates may eventually affect the stock market, which in turn may affect the crypto space as well.
On the other hand, the Ethereum merge, which is expected to be a game changer for the crypto space, is also fast approaching. He hopes that market confidence will increase if the merger is successful without any major technical flaws. According to Cowen:
This is a very important event for the entire crypto space because if it goes according to plan and there are no major disruptions then I think it could provide a lot of confidence to the asset class as a whole at a time when we really need it. If you think about all the bad things, this has happened in crypto this year.
cryptocoin.comAs you follow, Bitcoin is currently trading at $ 21,690.00.
