Cryptocurrency analyst Benjamin Cowen, Bitcoin $99,128.5He warned about the risks that BTC may face if it remains below $100,000. Cowen stated that the increase in US Treasury 10-year yield rates could have a negative impact on Bitcoin. The analyst stated that Bitcoin could get stuck at this level and fall.
Impact of US Treasury Yield Rates
According to Cowen, if yield rates continue to increase, it could create an upside down situation for Bitcoin. In the second half of 2023, Bitcoin fell below approximately $ 30,000 and remained at this level for weeks, causing the market to weaken. This caused Bitcoin’s demand to decrease and the price to decline even further.
Cowen claims that Bitcoin could fall by around 28% from its current level. If price movements are as in 2023, it may be possible for Bitcoin to remain at the $88,000-89,000 levels for a while and then drop to $70,000. This scenario will depend on whether Bitcoin remains above the $100,000 level, which will determine its short-term direction.
“If the 10-year interest rate continues to rise, it will create a headwind for Bitcoin. $100,000 will be the cap for Bitcoin. “If it is rejected at this level and falls below $90,000, the market will continue to weaken.” –Benjamin Cowen
Short Term Expectations
Cowen stated that if Bitcoin remains below the $ 100,000 level, there may be a decline in parallel with the movements in the S&P 500 and Russell 2000 indices. Currently, Bitcoin is trading at $100,300.
Since Bitcoin price movements are sensitive to changes in US Treasury 10-year yield rates, it is important for investors to follow these rates closely. As the analyst noted, if Bitcoin fails critical levels, the market can be expected to shrink further.
Experts consider market demand and investor sentiment, as well as macroeconomic indicators, when evaluating Bitcoin’s future performance. These factors will play an important role in determining Bitcoin’s short- and long-term direction.
The analyst’s warnings emphasize that Bitcoin investors should determine their strategy by taking market trends and economic indicators into account.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
