Speaking during an interview with Kitco News on September 8, Cowen noted that the correction would mirror Bitcoin’s historical price movements, especially after attaining an all-time high. Notably, Bitcoin has corrected by almost 70% from the near $69,000 all-time high recorded in November last year.
Impact of the Fed policy
According to Cowen, one main factor to look out for includes the Federal Reserve’s measures to contain rising inflation. He believes investors should be wary of interest rate hikes in a weak economy. The analyst also noted that the Fed activity is partly responsible for disrupting the Bitcoin bull market while maintaining the institution’s policies is a key factor to monitor. Amid the projection, Bitcoin has recovered significantly, trading at $21,100 after recording gains of almost 10% in the last 24 hours. At the same time, the Bitcoin rally has propelled the general crypto market to reclaim the $1 trillion capitalization.
Successful Merge upgrade to impact crypto market
Furthermore, Cowen noted that the upcoming Merge upgrade on the Ethereum (ETH) network would be a general key growth catalyst for the crypto market. He suggested that if the upgrade slated for mid-September is a success, it will build confidence in the market. The executive noted that confidence is needed to attract institutional investors into crypto. It is worth noting that institutional input was instrumental in driving the last bull market. Watch the full interview below: Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
