As the cryptocurrency market shows renewed momentum thanks to Bitcoin’s resilient stance in recent weeks, renowned industry analysts Benjamin Cowen and Guy from Coin Bureau have offered critical assessments of the market’s future.
During the broadcast, the most frequently asked question was whether the “sell in May and run” strategy would still be valid this year.
Analyst Benjamin Cowen compared Bitcoin’s current price movements to past “midterm election year” cycles. Cowen stated that the current situation shows similarities to the 2018 cycle, adding:
“We’ve been in the green for four weeks now. This is very similar to 2018, where we hit a low in February and a higher low in April. However, these kinds of counter-trend rallies always happen in bear markets. Investors shouldn’t be misled into thinking this is a permanent bull season.”
Cowen predicts that the real weakness will emerge during the summer months, especially with potential interest rate hikes by the Bank of Japan.
Another interesting development in the market was the unexpected stagnation of Bitcoin dominance. Cowen expressed surprise at the flat trend in dominance since the beginning of the year, attributing this to the increasing dominance of stablecoins.
Guy from Coin Bureau attributed the lack of an expected altcoin season in this cycle to Bitcoin ETFs. According to Guy, spot Bitcoin ETFs absorbed a large portion of the capital allocated to crypto, preventing it from flowing to other projects.
Experts, also addressing the uncertainty in global markets, expressed surprise that the S&P 500 index remained at record levels despite tensions in the Middle East and the energy crisis. Guy argued that the massive growth in the artificial intelligence (AI) sector was keeping traditional markets afloat, but that supply chain crises and inflationary pressures would have an impact in the long term.
*This is not investment advice.