Fed’s Moves Could Trigger Crypto Boom, Says Analyst

• Benjamin Cowen believes history is repeating itself in the crypto market.
• Cowen thinks the Fed is currently working on bringing inflation down to below 2%.
• Bitcoin is about to complete a six-month pullback period.

Crypto analyst Benjamin Cowen says history is repeating itself, especially with what is happening in the U.S. economy. He points to key factors that could shape the Fed’s future economic policy changes and how those changes might affect riskier assets like crypto.

Cowen believes the Fed is currently focused on lowering inflation from its current 2.92% to below 2%. He predicts rate cuts could happen as early as September, before the upcoming U.S. presidential election, with the Fed taking further steps to prevent inflation from bouncing back. The analyst notes that the U.S. employment rate is relatively low, and the Fed will aim to keep it that way to avoid hurting the economy.

Cowen also thinks the Fed might ease up on monetary policies to boost the economy in 2025, similar to what happened in 2019, which led to a crypto boom the following year. He sees Bitcoin’s 2024 behavior as mirroring 2019, given how the top cryptocurrency seems to be following a four-year pattern where the price peaks in Q4 of the post-halving year.

According to the analyst, Bitcoin is about to complete a six-month pullback period that aligns with developments in other market segments like Gold, which has also repeated its historical trend pattern. Although Cowen foresees Bitcoin rallying in 2025, he thinks the altcoin market will outperform the pioneer crypto this time. 

Meanwhile, Cowen highlighted how Ethereum has underperformed Bitcoin for the past two and half years. He showed that the pair have consistently repeated the current pattern. Hence, the altcoin market’s potential to surge in 2025 after staying out the rest of the year under pressure from BTC and building up momentum for next year’s rally.