Crypto Analyst Benjamin Cowen Warns of September’s Historical Risks for Cryptocurrencies

A prominent analyst in the crypto space is cautioning that Bitcoin (BTC) and the broader crypto market may experience a downturn this month based on historical trends. Benjamin Cowen, a crypto strategist with a significant following on YouTube, shared insights with his large subscriber base, highlighting the historical performance of Bitcoin during September.

Cowen pointed out a recurring pattern of negative returns for Bitcoin in September across multiple years, including 2017, 2018, 2019, and 2020. Regardless of the specific time frame analyzed, September has often been a challenging month for BTC, as observed by Cowen based on historical data.

Moreover, Cowen drew attention to the current situation involving the 10-year yields (US10Y) and 2-year yields (US2Y), emphasizing their potential impact on the market. The inversion of these yields is typically viewed as a precursor to a looming recession, with the subsequent “uninversion” signaling the completion of this economic indicator. Cowen highlighted the close proximity of the 2-year and 10-year yields to un-inverting, suggesting that a shift in this trend during September could have significant implications for the market.

Additionally, Cowen raised concerns about the performance of the TOTAL3 chart, which monitors the market capitalization of all crypto assets except Bitcoin, Ethereum (ETH), and stablecoins in comparison to Bitcoin (TOTAL3/BTC). He suggested that this chart might exhibit poor performance against Bitcoin in September, particularly in light of expectations for the Federal Reserve to reduce rates during the month.

Furthermore, Cowen underscored the importance of monitoring alt/Bitcoin pairs in September, drawing parallels to previous cycles. By analyzing the behavior of these pairs in relation to rate cuts by the Federal Reserve, Cowen highlighted potential trends that could impact the market in the coming weeks.

In conclusion, the insights shared by Cowen serve as a cautionary reminder for investors and traders in the crypto space to remain vigilant during September, considering the historical trends and potential economic indicators that could influence market dynamics. By staying informed and attentive to these factors, market participants can better navigate the evolving landscape of cryptocurrencies and make informed decisions in their trading activities.