Crypto market update: Risk assessment, Bitcoin trend, and fed impact

The past few months have witnessed the crypto market go on a dynamic journey. Now that the market is catching breath, analysts are surfacing with their takes on navigating the industry.

Benjamin Cowen from IntoTheCryptoverse is one such analyst who shared keen insights into the BTC market. Cowen recently shared a string of tweets urging investors to focus on risk assessment instead of hype-buying tokens.

Risk Management in the Cryptosphere

In his recent tweets, Cowen heavily emphasized the importance of making data-based investment decisions. The analyst suggests traders focus on risk metrics instead of relying on popular stories.

Cowen talked about the recent gold price breakout to explain the situation. Investors have seen gold as a safe haven amid economic uncertainty for decades. A price hike for gold means a shift in investor sentiment to more risk-averse approaches.

However, the analyst argues that a better indicator of a potential correction is the breakdown in the ratios between Bitcoin and other major altcoins. If the ratio falls massively, it indicates a loss in trust among investors, pushing them back to BTC, the supposed safe option in the crypto market.

Cowen advises traders to employ calculated risk management in order to generate profits on a periodic basis. The analyst advises investing short-term gains from meme coins into USD or BTC in order to generate long-term profits.

Bitcoin: Uptrend or Correction?

When it comes to BTC, the expert talked about focusing on the 8-week moving average. If BTC floats above the level, the current uptrend will continue to stay still. On the other hand, a dip below the benchmark signifies a potential trend reversal.

Cowen foresees an imminent increase in BTC.D. (Bitcoin dominance), which denotes the proportion of BTC’s overall market capitalization of cryptocurrencies. According to the analyst, Bitcoin’s dominance is anticipated to reach 56% in the future weeks.

The Federal Reserve’s Looming Influence

The Fed’s upcoming decisions can also affect the crypto market significantly. Cowen expects the Federal Reserve will lower interest rates once the unemployment rate reaches 4%. A sudden shift in policy may introduce liquidity into the market, which may affect cryptocurrencies.

According to Cowen, the decision will massively affect Ethereum, the second-biggest crypto. A cut in interest rate will result in a drop in the ETH-BTC ratio, possibly dropping to 0.03. It suggests a probable dip in ETH’s value compared to BTC. 

In Conclusion

Benjamin Cowen’s analysis offers in-depth insights for traders guiding through the crypto market. The analyst emphasizes risk management to understand BTC’s trends and anticipate its movement.

Furthermore, the expert emphasized the critical nature of the forthcoming Federal Reserve meetings. Additionally, investors can develop decisions supported by data by examining these choices. It is vital to recognize the intricate nature of the cryptocurrency market. Before making significant investments, it is therefore preferable for traders to conduct even more investigation, even if they obtain insightful observations.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

Related Articles

Back to top button