Cowen: S&P 500 Correction Could Drag Bitcoin Toward Cycle Low by October

Analyst Benjamin Cowen warns investors not to become overly attached to bearish market narratives. He believes that narrative follows price, rather than the other way around.

Cowen's base-case scenario is a secondary correction in US equities later this year, which could drag Bitcoin toward a cycle low around October. The analyst tied Bitcoin's outlook to the S&P 500, noting that four-year market cycles are not unique to crypto.

Cowen pointed to 2018 as an example of how a second-half equity correction coincided with Bitcoin's collapse below $6,000. He believes that if stocks pull back meaningfully this year, Bitcoin could find a cycle low around October.

The analyst also challenged the way investors interpret market moves, arguing that traders often invent explanations for Bitcoin's rallies and selloffs after they happen. Cowen said that investors should pay closer attention to broader liquidity conditions and equity-market trends rather than focusing on headlines.