Famous analyst Benjamin Cowen, Bitcoin $95,447.5He noted that (BTC) price movements may reflect the performance of the first 13 months of the Nasdaq exchange-traded fund (ETF) Invesco QQQ, which was launched nearly 26 years ago. In his statement, Cowen stated that the QQQ ETF reached its peak with a 150% increase in about a year after its launch.
QQQ ETF and Its Effects on Bitcoin
QQQ ETF tracks the performance of the 100 largest companies listed on the Nasdaq exchange. Cowen said that Bitcoin, the leader of the cryptocurrency world, could exhibit a similar price movement as it approaches its first anniversary since the launch of the spot Bitcoin ETF. However, he added that it was unlikely to happen in exactly the same way.
Cowen noted that the QQQ ETF rose from $48 to $120 in 1999, and this increase occurred in approximately 54 weeks. Similarly, while Bitcoin’s spot ETF launch price was around 48,000, it is trending upwards to that level, he said. He highlighted that after 54 weeks, the QQQ ETF went from 48 to 120, followed by a significant decline.
“If Bitcoin closely follows the price movements of the QQQ ETF over its first 13 months, there is a 48% chance of a decline.”
When Cowen examined Bitcoin’s highs on the daily time frame, he stated that it could rise up to 120,000 with the trend line. However, it reminded us that the QQQ ETF had a huge decline after reaching $120, falling to $63′.
Current Status of Bitcoin
Following the fluctuation in the macroeconomy, BTC price dropped to $92,500. The situation has been extremely frustrating for altcoin investors. We have seen many cryptocurrencies experience double-digit declines. However, there is also a similar weather to last year. We will experience whether the crypto-friendly Trump figure, which is as big as ETF approval, is really good for crypto.
This potential volatility in the Bitcoin market may be important for investors to manage their risks and follow market trends closely. Cowen’s analysis offers important clues about Bitcoin’s future price movements.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
