The cryptanalyst said that the BTC rate would decline to the inflation reversal point

Cryptocurrency analyst Benjamin Cowen is confident that it is possible to predict the bottom of the main crypto coin, given the historical ratio of inflation and the S&P 500 stock index. According to him, historically, the index doesn’t bottom out until inflation peaks and reverses.

Often, BTC behaves like the S&P 500. Therefore, Bitcoin cannot bottom until inflation slows down, Cowen said.

“Now macroeconomic indicators, such as inflation and the S&P 500, look incredibly bleak. But historically, we’ve seen that when inflation peaks, it means a bottom for the S&P. If you go back to the 1970s, you’ll see a very similar type of move where the S&P bottomed out just as inflation hit its first peak. By this point, the fall in the S&P was down about 50%,” said the cryptanalyst.

According to Cowen, now, like half a century ago, inflation is rising and the S&P is falling, so a repeat of the scenario of the 70s is very possible.

“We know that inflation has not reached its peak yet. It will continue to rise and will do so for some time before we actually see a more convincing peak. Until then, we must assume that the bottom of the S&P 500 has not been reached. And since bitcoin correlates with the S&P 500, we can assume that its bottom has not yet come either,” the expert is sure.

And the head of Binance, Changpeng Zhao, despite the fact that investors are currently suffering significant losses, does not panic and is optimistic about the situation. According to him, the current market situation is favorable for the expansion of blockchain companies at a lower cost. And Binance intends to take advantage of this.

In addition, Zhao believes that during the crypto winter, the industry will clear up from the scam, and in the long term this will make investors more protected from fraud.

Do you agree with this?