Bitcoin’s bull market is different from previous cycles, says analyst Benjamin Cowen – here’s why

Crypto analyst Benjamin Cowen says Bitcoin’s current market cycle is proving to be unique.

In a new strategy session, Cowen explains to his 456,000 YouTube subscribers that Bitcoin’s higher market cap makes it harder to move the price dramatically.

“With each cycle it becomes harder and harder to move up the curve, and again this is because market capitalization is growing. [and] it takes exponentially more volume to increase the price. “

Cowen uses a model that predicts a lengthening cycle as the return on investment (ROI) of BTC gradually decreases.

“I’ve always speculated that we need institutions to even go to a $ 100,000 bitcoin. This is the volume it will take to get us there. Again, this is the cycle of institutions and I have always been skeptical that any institution known to man will switch to FOMO (fear of missing out) in Bitcoin in 2021, and we will all sell in 2022 and come back in a couple of years. I don’t think it will work that way. I think there will be a lot of institutions going on and this cycle will be a little different from all the other cycles we’ve seen.

We have made many comparisons with the 2013 cycle. I think it’s similar to the 2013 cycle, but significantly longer. I think the main thing is that the time between different moves in this current cycle has changed compared to 2013 … In fact, we have returned to ROIs that are lower than the last market cycle. “

Cowen believes that it is possible that Bitcoin could have several months in which it does not hit new all-time highs and may also drop below the $ 30,000 mark. However, he predicts that Bitcoin has another “leg” left in the current market cycle.

“I think we will have a similar outlook to 2019, where we will either go down or sideways for a short time. We will have this consolidation phase and then we will continue on to the next leg of our journey and this will just be another stepping stone for us to get there. That’s what I ultimately see. ”

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