Benjamin Cowan: I no longer believe in bitcoin at $100,000 by the end of the year

A cryptocurrency analyst and experienced investor believes that against the backdrop of accelerating inflation and the growth of the US dollar, Bitcoin will be under pressure from active sellers.

Benjamin Cowen said that while the US Federal Reserve (Fed) will try to fight inflation hard, bitcoin will continue to fall. Cowan admitted that he previously hoped for BTC to rise to $100,000 by 2023, but does not believe in such a scenario at the moment.

“As long as the dollar remains in a macro bullish trend, I think it’s safe to assume that Bitcoin will remain under some pressure. And not only bitcoin, but all high-risk assets. Every time we have inflation data higher than the previous month, there will be a drop in the crypto market,” explained Cowen.

The latest inflation data released on Wednesday, July 13 by the US Bureau of Labor Statistics,
showed that the consumer price index - the inflation benchmark - rose by 1.3% compared to June 2022. As a result, US annual inflation hit a new forty-year high of 9.1%.

Inflation growth exceeded last month's forecast of 8.8%. The dollar index jumped to a two-year high of $108.57 as inflation news broke.

The market expects that at its next meeting on July 27, the Fed will raise its key rate by another 75 basis points. The market leaves the possibility of a rate hike at 1% at the next Fed meeting with a probability of 14.2%. This year, the Fed has raised rates to 1.75% three times already.

As a result of the publication of inflation data, Bitcoin fell in price to $19 450, then rebounded to $19 580. Ethereum fell to $1 015, and then rose to $1 060. Altcoins followed the leaders, as a result of which the capitalization of the cryptocurrency market
fell to $853 billion.

At the same time, specialists from the research agency CoinShares note that against the backdrop of an outflow of capital from Bitcoin funds, the inflow of money into Ethereum has been growing for the third week now. Analysts say that we are on the verge of a trend change in the ETH market.