Cowen Concedes: Interest Rate Hikes Not as Bearish for Bitcoin as Thought

Crypto analyst Benjamin Cowen has admitted that his previous prediction for Bitcoin did not materialize. He had believed that $BTC would not surpass its May peak, but it indeed rose above that level, reaching approximately $86,000.

Cowen acknowledged that the current market structure is sending different signals than in past cycles. One of the main mistakes was assuming that the Fed's interest rate hike would have a direct negative impact on Bitcoin in the short term. He thought rising energy prices would increase bond yields, forcing the Fed to raise interest rates, followed by a stronger dollar and a decline in Bitcoin's value.

Cowen stated that his expectations regarding energy prices, bond yields, interest rates, and the dollar largely materialized, yet Bitcoin rose along with the dollar instead of falling. The analyst noted that when reviewing past interest rate hike periods, he saw that Bitcoin did not always fall immediately after the Fed's first rate hike.

Cowen believes that spot Bitcoin ETFs may also have contributed to strengthening $BTC's relationship with traditional financial markets. He stated that the assumption that past Bitcoin cycles will repeat themselves should now be used with more caution.