Well-known analyst Benjamin Cowen, Bitcoin $96,632.0He warned that there could be a possible correction at the beginning of 2025 as BTC enters its first post-halving year.
Historical Corrections
Cowen underlined the corrections that occurred in January in the last two post-halving years and stated that Bitcoin could experience double-digit percentage corrections during this period. He stated that decreases of approximately 30% were observed in January in 2017 and 2021.
“At least the last two [halving sonrası yılda]there was a correction in January. In 2017 and 2021, a decrease of approximately 30% was recorded in January.” –Benjamin Cowen
However, Cowen pointed out that this year may follow a different course. Stating that there was already a correction in December, Cowen suggested that this reflected the expectation of the correction in January.
“However, the counter-argument could be that Bitcoin previously fell in December because the correction in January was expected and perhaps occurred in December.” –Benjamin Cowen
Interest Rates and Cryptocurrencies
Cowen cited the increase in interest rates on 10-year US bonds as the reason why Bitcoin targeted a decline in December. The fact that these rates are at historically high levels may have prevented Bitcoin from rising.
“10-year interest rates are at the highest levels in Bitcoin’s history and these increases may be restricting Bitcoin’s upward movement.” –Benjamin Cowen
If the expected correction occurs, it is possible for Bitcoin to drop to $77,712, where the 10-week moving average is. Cowen stated that this move could confirm market expectations. However, even though BTC dropped by double digits in the years after the halving, we should not experience such a big losing streak since it usually reached ATH levels in these periods and we emerged from the December decline.
Considering historical data and economic indicators, Bitcoin investors may face the risk of a possible correction at the beginning of 2025.
It may be useful for those considering making Bitcoin investments to closely follow market trends and economic indicators.
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.
