A widely followed crypto analyst says digital assets need looser monetary policy before they can move forward again.
In a new video update, crypto strategist Benjamin Cowen tells With its 806,000 YouTube subscribers, the Federal Reserve must reverse course on its tight monetary policy before the crypto markets can take off.
According to Cowen, Bitcoin (BTC) has been slowly bleeding out since March due to the Fed’s hesitation to implement quantitative easing.
However, he says the Fed’s easing policy in September seems the most likely scenario.
“Can [the crypto market] sustainable change before the Fed switches to a loose monetary policy? I don’t know… It’s possible the market will cool off a bit for the rest of 2024. If the market goes for bananas, it’s hard to see, but you just have to zoom out.
If you zoom out and look at what has happened since March, Bitcoin has only been slowly declining. I think the reason for this is that the markets need more accommodative policies, they need quantitative easing.
The market is waiting a bit because we don’t really know when it will happen. Now we think we know that September seems the most likely outcome.”
Cowen further says that the crypto king’s unrest in recent months is due to fluctuating expectations about when and how the Fed will cut rates.
“Expectations are constantly changing, which can also cause the market to do a kind of whiplash action where it just keeps going up and down and I think it’s kind of like swinging from one extreme to the other on what expectations [toward the Fed] Are.”
Bitcoin is trading at $58,776 at the time of writing, down 4.19% over the past 24 hours.
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