Cryptocurrency analyst Benjamin Cowen has issued warnings regarding the risks Bitcoin (BTC) 
$80,985 may encounter if it remains below the $100,000 mark. He noted that the rising yield rates of U.S. Treasury bonds could negatively impact Bitcoin. Cowen expressed concerns about Bitcoin potentially stagnating at this level and falling further.
Impact of U.S. Treasury Yield Rates
According to Cowen, a continuous rise in yield rates could create a downward trend for Bitcoin. In the second half of 2023, Bitcoin dropped below $30,000 and remained at that level for weeks, weakening the market. This situation led to decreased demand for Bitcoin and further price declines.
Cowen claims that Bitcoin could drop by approximately 28% from its current level. If price movements mimic those of 2023, it could linger around $88,000 to $89,000 before potentially falling to $70,000. This scenario hinges on whether Bitcoin can maintain its position above the critical $100,000 level.
Short-Term Expectations
Cowen suggests that if Bitcoin remains below $100,000, it might experience a decline in parallel with the movements of the S&P 500 and Russell 2000 indices. Currently, Bitcoin is trading at approximately $100,300.
Given that Bitcoin’s price movements are sensitive to changes in U.S. Treasury yield rates, it is crucial for traders to monitor these rates closely. As the analyst indicated, failure to break critical levels could lead to further market contraction.
Experts consider macroeconomic indicators, market demand, and investor sentiment essential when assessing Bitcoin’s future performance. These elements play a significant role in determining both the short-term and long-term direction of Bitcoin.
Cowen’s warnings emphasize the need for Bitcoin traders to formulate strategies based on market trends and economic indicators.
