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Benjamin Cowen Issues Bitcoin Alert, Says Potential Plunge ‘That Scares People’ Incoming – Here’s His Outlook

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Widely followed analyst Benjamin Cowen is issuing a warning on Bitcoin (BTC) as the flagship crypto asset trades near its all-time high.

In a new video, Cowen tells his 820,000 YouTube subscribers that Bitcoin could turn bearish around one month after the US general election.

“I just want to put that out there as one potential outcome that following the election, there’s going to be a lot of really bold calls as to what will happen. And what I think could happen is a drop sometime in early December that scares people. And I think it might be around the time of the labor market release [Non-Farm Payroll report is scheduled for December 6th].”

According to Cowen, Bitcoin could drop somewhere between 12% to 46% from the current level if the bearish scenario plays out.

“What is unclear to me right now is whether that drop by Bitcoin is just back-testing this [around $65,000] and then going up in 2025 or if it’s back-testing down here [around $40,000] and then going up. That is what I still remain somewhat unsure of…”

Source: Benjamin Cowen/YouTube

At time of writing, Bitcoin is trading at $73,813, down about 2% from its all-time high of around $75,400.

The widely followed analyst says that his envisaged Bitcoin correction in December would likely be temporary if it happens.

“I could envision a scenario where after the political outcomes are all decided if Bitcoin doesn’t immediately move up and then it starts to crash people might assume that the cycle is over. But it could very well just simply be the soft landing scenario…

…you could get a situation where you know Bitcoin sort of falls here and then rallies on up to new all-time highs in 2025.”

Source: Benjamin Cowen/YouTube

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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MicroStrategy Expands Bitcoin Holdings to 471,100 BTC Worth $46 Billion

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MicroStrategy has once again solidified its position as the largest corporate holder of Bitcoin, announcing the acquisition of an additional 10,100 BTC for $1.1 billion. The latest purchase, made at an average price of $105,596 per Bitcoin, occurred just before a market correction saw Bitcoin’s price dip 6% below $100,000.

This purchase comes on the heels of the firm’s acquisition of 11,000 BTC just days earlier, which brought its total holdings to 461,000 BTC at an average cost of $63,610 per Bitcoin. With the latest transaction, MicroStrategy now holds an estimated 471,100 BTC, valued at approximately $46 billion based on current market prices.

Related: Why Hundreds of Companies Will Buy Bitcoin in 2025

Funding the Bitcoin Stash

MicroStrategy financed these recent acquisitions through stock sales. The company successfully generated $1.1 billion by leveraging its shareholder-approved increase in authorized Class A common shares, expanding from 330 million to an unprecedented 10.3 billion shares. This decision, reported by Bloomberg, underscores the company’s aggressive commitment to its Bitcoin-focused treasury strategy.

A Bold Vision for Bitcoin

Michael Saylor, MicroStrategy’s co-founder and outspoken Bitcoin advocate, teased the latest purchase on social media, reiterating the firm’s unwavering dedication to Bitcoin as a treasury asset. This move aligns with the broader narrative of Bitcoin adoption in the U.S., where recent developments, including President Trump’s call for a national ‘digital asset stockpile,’ have fueled interest in Bitcoin’s role as a strategic reserve asset.

Related: Trump Signs Executive Order to Explore a U.S. Strategic Bitcoin Reserve

A Remarkable Streak

This latest purchase extends MicroStrategy’s buying streak to 12 consecutive weeks, cementing the company’s reputation as a relentless accumulator of Bitcoin. Despite market volatility and skepticism from traditional investors, MicroStrategy’s strategy has been clear: to double down on Bitcoin, positioning it as the centerpiece of its corporate treasury.

MicroStrategy’s continued accumulation reflects not only the company’s confidence in Bitcoin’s long-term value but also a potential paradigm shift in corporate treasury management as more firms begin to explore Bitcoin as a hedge against inflation and economic uncertainty.





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How Declining Short-Term U.S. Treasury Yields Impact Bitcoin Price

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The recent divergence in U.S. Treasury yields, where shorter-term yields have been declining while longer-term yields are on the rise, has sparked significant interest across financial markets. This development provides critical insights into macroeconomic conditions and potential strategies for Bitcoin investors navigating these uncertain times.

Treasury Yield Dynamics

Treasury yields reflect the return investors demand to hold U.S. government debt, and they are a critical barometer for the economy and monetary policy expectations. Here’s a snapshot of what’s happening:

  • Short-term yields falling: Declining yields on short-term Treasury bonds, such as the 6-month yield, suggest that markets are anticipating the Federal Reserve will pivot to rate cuts in response to economic slowdown risks or lower inflation expectations.
  • Long-term yields rising: Meanwhile, rising yields on longer-term bonds, like the 10-year Treasury yield, indicate growing concerns about persistent inflation, fiscal deficits, or higher-term premiums required by investors for holding long-duration debt.

This divergence in yields often hints at a shifting economic landscape and can serve as a signal for investors to recalibrate their portfolios.

Related: We’re Repeating The 2017 Bitcoin Bull Cycle

Why Treasury Yields Matter for Bitcoin Investors

Bitcoin’s unique properties as a non-sovereign, decentralized asset make it particularly sensitive to macroeconomic trends. The current yield environment could shape Bitcoin’s narrative and performance in several ways:

  1. Inflation Hedge Appeal:
    • Rising long-term yields may reflect persistent inflation concerns. Historically, Bitcoin has been seen as a hedge against inflation and currency debasement, potentially increasing its appeal to investors looking to protect their wealth.
  2. Risk-On Sentiment:
    • Declining short-term yields could indicate looser financial conditions ahead. Easier monetary policy often fosters a risk-on environment, benefiting assets like Bitcoin as investors seek higher returns.
  3. Financial Instability Hedge:
    • Divergence in yields, particularly if it leads to an inverted yield curve, can signal economic instability or recession risks. During such periods, Bitcoin’s narrative as a safe-haven asset and alternative to traditional finance may gain traction.
  4. Liquidity Considerations:
    • Lower short-term yields reduce borrowing costs, potentially leading to increased liquidity in the financial system. This liquidity often spills into risk assets, including Bitcoin, fueling upward price momentum.

Broader Market Insights

The impact of yield divergence extends beyond Bitcoin to other areas of the financial ecosystem:

  • Stock Market: Lower short-term yields typically boost equities by reducing borrowing costs and supporting valuation multiples. However, rising long-term yields can pressure growth stocks, particularly those sensitive to higher discount rates.
  • Debt Sustainability: Higher long-term yields increase the cost of financing for governments and corporations, potentially straining heavily indebted entities and creating ripple effects across global markets.
  • Economic Outlook: The divergence could reflect market expectations of slower near-term growth coupled with longer-term inflationary pressures, signaling potential stagflation risks.

The U.S. national debt is the total amount of money owed by the US federal government to its creditors, including individuals, corporations, and foreign governments. The Federal Reserve is the largest holder of U.S. government debt. Source: Bitcoin Magazine Pro – Federal Reserve Debt vs Bitcoin

Related: What Bitcoin Price History Predicts for February 2025

Takeaways for Bitcoin Investors

For Bitcoin investors, understanding the interplay between Treasury yields and macroeconomic trends is essential for informed decision-making. Here are some key takeaways:

  • Monitor Monetary Policy: Keep a close eye on Federal Reserve announcements and economic data. A dovish pivot could create tailwinds for Bitcoin, while tighter policy might pose short-term challenges.
  • Diversify and Hedge: Rising long-term yields could lead to volatility across asset classes. Diversifying into Bitcoin as part of a broader portfolio strategy may help hedge against inflation and economic uncertainty.
  • Leverage Bitcoin’s Narrative: In an environment of fiscal deficits and monetary easing, Bitcoin’s story as a non-inflationary store of value becomes more compelling. Educating new investors on this narrative could drive further adoption.

Conclusion

The divergence in Treasury yields underscores shifting market expectations around growth, inflation, and monetary policy—factors that have far-reaching implications for Bitcoin and broader financial markets. For investors, understanding these dynamics and positioning accordingly can unlock opportunities to capitalize on Bitcoin’s unique role in a rapidly changing economic landscape. As always, staying informed and proactive is key to navigating these complex times.

For ongoing access to live data, advanced analytics, and exclusive content, visit BitcoinMagazinePro.com.

Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct thorough independent research before making investment decisions.





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Definition of a Bull Market Playing Out As Long-Term Holders Offload Coins, According to CryptoQuant CEO

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CryptoQuant CEO Ki Young Ju says that Bitcoin (BTC) is currently displaying classic bull market behavior on-chain.

Ki tells his 400,500 followers on the social media platform X that short-term BTC holders are entering the market, scooping up long-term holders’ coins.

Short-term BTC holders are investors who have held their coins for less than 155 days while long-term holders are those who have kept their coins inactive for 155 days or more.

According to the chief executive of the analytics firm, the transfer of BTC from long-term to short-term holders is something typically seen in previous bull markets.

“Trump promoted Bitcoin globally.

Short-term holders keep entering, while long-term holders are offloading.

If you know, you know – this is the definition of a bull market.”

Image
Source: Ki Young Ju/X

Citing CryptoQuant data, Ki also says that larger BTC investors with at least one whole coin are gobbling up Bitcoin while smaller entities with less than a coin are offloading.

“Bitcoin retail investors with <1 BTC are selling, while the others with 1 [or more] BTC are buying.”

Image
Source: Ki Young Ju/X

Ki says it’s possible that with President Trump’s “global promotional impact,” the bull run could be extended by “another couple of quarters” longer than usual, perhaps into 2026.

“Typical BTC distribution:
Whales —-> Retail Investors

This cycle:
Retail Investors (OG) + Whales (OG) —-> Retail Investors (Paper Bitcoins) + Whales (Institutions)
———-

OGs leave footprints through on-chain activity and crypto exchanges, while paper Bitcoin (ETFs, corporate stocks) leaves custody wallet on-chain footprints at settlement.

———-
Final phase of distribution:
Retail Investors (OG) + Whales (OG) + Whales (Institutions) —-> Retail Investors (Paper Bitcoins)
———-

I expect this won’t happen until at least mid-year. It might even extend into next year.”

At time of writing, Bitcoin is worth $98,847.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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