Benjamin Cowen, an analyst often linked to the crypto downturn of 2021, has shared another bleak forecast for the market.
This warning came after a tough week, which began with Strategy’s initial investment in Bitcoin. It’s worth noting that just 32 BTC were sold from a stash of over 840,000 hidden assets, yet this event stirred up quite a bit of reaction.
Before the sale, Bitcoin had been trading above $73,000, but has since dropped more than 18% to about $59,493, reflecting a decline of over 25% in just the past month.
The last time Bitcoin touched $60,000 was in early February during heightened tensions between the US and Iran, although it only dipped close to $62,000 back then.
The downward trend wasn’t isolated to Bitcoin. Ethereum experienced a drop of more than 10% in just 24 hours, settling around $1,578. Meanwhile, XRP went down about 5% to $1.10, and Solana dropped over 6%, landing at $64.56.
According to CoinGlass, around 315,953 traders faced liquidation in just one day, amounting to about $1.58 billion. Bitcoin and Ethereum were significant contributors, with Bitcoin accounting for roughly $487 million and Ethereum about $435 million.
Zcash and Cardano deepen their defeat
The situation worsened for two cryptocurrencies. Zcash, one of the longstanding privacy-focused coins, plummeted over 36% after a vulnerability was revealed. This flaw might have allowed someone to mint an unlimited number of counterfeit ZEC tokens. An emergency fix was rolled out, but by then, significant damage had occurred, with more than $132 million liquidated from Zcash alone.
Cardano also faced troubles. Its native token, ADA, fell sharply on June 3 after founder Charles Hoskinson warned of a “wave of failures.” The situation worsened when he announced a break from the project. Although he reassured that he wouldn’t abandon it, ADA nevertheless dropped over 16% in just 24 hours, hitting $0.1588.
Cowen’s frank warning
The founder of Into The Cryptoverse expressed that the current market weaknesses are almost textbook in nature. He commented that “medium years always feel really bad for crypto,” adding that the situation has deteriorated with the market falling into a state of apathy.
Yet, despite these challenges, Cowen remains hopeful about Bitcoin’s future. “Many cryptocurrencies will disappear, but I think Bitcoin will survive,” he stated.
Later, he responded to those dismissing the concept of a four-year cycle in the market.
