Here is What Could Hinder Bitcoin’s Bull Market, According to Crypto Expert

A cryptocurrency analyst recently revealed a notable obstacle on the path of Bitcoin's revival, that could negatively impact the token's price trajectory.

Popular crypto expert Benjamin Cowen is cautioning that the rising US unemployment rate could significantly affect Bitcoin’s (BTC) performance.

Cowen pointed out the historical link between employment figures and risk assets, suggesting that if unemployment continues to increase as the year ends, Bitcoin may remain trapped in a bearish trend.

He noted that, based on historical cycles from the year 2000, the unemployment rate could rise to around 4.8% to 4.9% by year-end. Cowen believes that if this happens, Bitcoin will likely struggle to break through its current lower-high price structure.

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Drawing comparisons with the 1990s, he mentioned that although the S&P 500 faced a recession, it only declined by about 20%, with the unemployment rate possibly reaching 4.6%.

Cowen also highlighted similarities between Bitcoin’s current trajectory and its behavior in 2019, where it experienced a series of lower highs and lows on a monthly basis before ultimately breaking out.

He emphasized the importance of monitoring the labor market, arguing that it’s easy to overlook its influence on Bitcoin’s movement. Cowen reflected on how many failed to predict Bitcoin’s potential dip, recalling that many believed it would reach $100,000 just six months ago. He noted the current market resembles a slow, painful decline characterized by lower highs and lower lows, alongside an increase in Bitcoin dominance.

Alexander Stefanov