Benjamin Cowen, an American researcher, cryptocurrency analyst, and YouTuber, says that the recent market cycle of Bitcoin is turning out to be in a class by itself. In his new YouTube session, Cowen describes to his YouTube following of 456k that the increasing market capitalization of BTC is proving it to be more difficult to significantly shift the price.
He explains that the continuous growth of market capitalization makes the required volume for moving the price grow exponentially as well, making it increasingly harder to push it over the curve.
Cowen uses a model which foresees a longer cycle as Bitcoin’s investment return slowly shrinks. In his video, he says that he always guessed that would be required to reach a hundred thousand BTC. “That would be the volume necessary to reach the goal,” he comments, “This was the rotation of institutions; I used to think that all institutions would go through what is known as the “fear of missing out” of investing in BTC in the year 2021 and that they will end up selling in the year 2022, then return after a few more years”. Moreover, he explained that he does not think this is how it would happen anymore. The cycle will be much different as compared to any in the past because organizations will keep on investing in BTC for a longer time.
Furthermore, he compared the recent cycles to the year 2013 ones and pointed out how similar they are to 2013 but considerably elongated. He believes the major factor is the period between the different moves has altered in the recent cycle in comparison to the cycle in 2013. The return on investments has fallen below the previous market cycle.
Benjamin states that it can be possible that BTC does not reach new peaks for quite a few months and can even fall below $30,000. He thinks that they might again go through what they did in the year 2019, where the market will either dip or go sideways for some time. It will have a merging phase, which will then continue to the next part of the journey. The dip will only be a stage of advancement. “That is how I see it playing out eventually,” he says.