Renowned analyst Benjamin Cowen warns that Bitcoin might experience a correction at the beginning of 2025 following its first halving year. Historical patterns indicate significant price corrections, with Cowen suggesting the possibility of double-digit percentage declines during this period.
Historical Corrections
Cowen emphasizes that in the aftermath of the last two halvings, January corrections averaged around 30%. He noted that similar patterns occurred in January 2017 and 2021, with Bitcoin dropping approximately 30%.
Interest Rates and Cryptocurrencies
Cowen attributes Bitcoin’s December decline to rising interest rates on 10-year U.S. Treasury bonds. He argues that these historically high rates may have hindered Bitcoin’s upward momentum.
Forecast and Recommendations
If a correction occurs, Bitcoin could decline to around $77,712, which aligns with its 10-week moving average. Cowen believes this action could confirm market expectations. Nonetheless, despite BTC’s characteristic double-digit drops in halving years, it often recovers to reach all-time highs, suggesting that significant losses should not be expected.
With historical data and economic indicators in mind, Bitcoin investors may face the risk of a correction at the start of 2025. Those considering Bitcoin investments should closely monitor market trends and economic indicators for better decision-making.
