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Crypto Analyst Benjamin Cowen Talk About Possibility of Bitcoin Trend Reversal

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According to crypto researcher Benjamin Cowen, one macroeconomic indicator might be the catalyst for a Bitcoin trend reversal.

Cowen tells his 754,000 YouTube subscribers in a new strategy session that he’s keeping an eye on the rate of US inflation and its association with equities markets and Bitcoin.

As per Cowen, traditionally, the S& P 500 index does not bottom out until inflation reaches a peak and then reverses. Because Bitcoin frequently behaves similarly to the index, Cowen believes that BTC may not bottom out until inflation subsides.

“One of the things that we know that’s going on right now which is making the macro look incredibly bleak at the moment are things like inflation and again this is the S&P 500 overlayed with inflation. One of the things we will clearly note… is that when inflation peaks, that tends to correspond to the bottom of the S&P.”

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According to historical statistics, the prominent crypto expert believes that Bitcoin and the stock market will continue to fall as long as inflation continues to rise.

“If you go back into the 1970s, you’ll see a very similar type of move where the S&P bottomed right around the time that inflation hit that first peak and again even from this local top, it represented about a 50% drop in the S&P 500.

So when we go look at the market today we continue to see the S&P is dropping. We also know that inflation hasn’t necessarily peaked yet, and it would be somewhat irresponsible to assume that it has until really proven on the charts. I think inflation is continuing to go up and will likely continue to go up for some time before we actually see a more convincing peak. Until that time occurs, we should not yet assume that the S&P 500 bottom is in. 

And since Bitcoin acts like a risk asset just like the S&P 500, we should also assume that the macro bottom is not necessarily in.” He said.