Crypto Markets Need Looser Fed Policy Before Moving Higher, According to Analyst Benjamin Cowen

A widely followed crypto analyst says that digital assets need looser monetary policy before moving another leg up.

In a new video update, crypto strategist Benjamin Cowen tells his 806,000 YouTube subscribers the Federal Reserve needs to reverse course on its tight monetary policy before the crypto markets can take off.

According to Cowen, Bitcoin (BTC) has been slowly bleeding out since March due to the Fed’s hesitation to engage in quantitative easing.

However, he says the Fed loosening policy by September appears to be the most likely scenario.

“Can [the crypto market] durably change before the Fed pivots to loose monetary policy? I don’t know… It’s possible the market kind of cools off for the rest of 2024. When the market goes bananas, it’s hard to see that but you just have to zoom out.

When you zoom out and look at what happened since March, Bitcoin has just been slowly going down. I think the reason is because the markets need looser policy, they need quantitative easing.

The market is kind of waiting because we don’t actually know when it’s going to occur, now we think we know September seems like the most likely outcome.”

Cowen goes on to say that the crypto king’s downhill choppiness over the last several months is due to fluctuating expectations on when and how the Fed cuts rates.

“Expectations are constantly shifting which can also cause the market to sort of do this whipsaw action where it just keeps going up and down and I think it’s kind of the movements from one extreme to the other on what expectations [toward the Fed] are.”

Bitcoin is trading for $58,776 at time of writing, a 4.19% decrease during the last 24 hours.