Cryptocurrency analyst Benjamin Cowen is feeling optimistic about Bitcoin (BTC) as the leading digital asset remains above the $100,000 mark. With a significant following of 836,000 subscribers on YouTube, Cowen suggests that Bitcoin may experience one last surge before the year ends if it adheres to the cyclical pattern of highs and lows following the halving event that occurs every four years.
According to Cowen, the US unemployment rate could play a key role in determining Bitcoin’s trajectory. He believes that if the unemployment rate remains the same or decreases, it could be a positive sign for Bitcoin’s price movement. Cowen explains, “So in order for Bitcoin to continue to push higher though into the end of the year and continue to follow the cyclical view then arguably the labor market data needs to come in relatively okay this month. So I would say if the unemployment rate were to come in at 4% or 4.1% then it would likely favor Bitcoin to continue to go up into the end of the year.”
In November, the U.S. Bureau of Labor Statistics reported an unemployment rate of 4.1%, the same figure as the previous month. Cowen points out that there has been an inverse relationship between Bitcoin’s price and the US unemployment rate over the past few months. He notes, “Bitcoin needs a reason to go down, not a reason to go up. Bitcoin just naturally goes up because people dollar-cost-average Bitcoin. So it tends to go up for no reason at all. If it’s going to go down, it needs a reason.”
Cowen highlights that from March to August, Bitcoin’s price was influenced by the rising unemployment rate. However, since August, as the unemployment rate stabilized or declined, Bitcoin’s price also saw a corresponding increase. This correlation suggests that economic indicators can impact the digital asset’s performance.
As of the time of writing, Bitcoin is trading at $96,607. Cowen’s analysis provides valuable insights for investors and traders looking to understand the factors influencing Bitcoin’s price movements. Stay tuned for more updates on Bitcoin’s price action and market trends.