The crypto analyst Benjamin Cowen is warning the crypto community of a potential market crash before the halving which is scheduled for next year. Cowen called this pattern the “pre-halving scare” which happened before both 2015 and 2016 halving.

He points out that altcoins will suffer a bigger crash than Bitcoin as they have lower liquidity. Cowen has also noted that we are currently in a “Bitcoin Season”, where Bitcoin has outperformed every other top-50 crypto asset in the past 60 days.

He highlights that we should expect a wild ride ahead due to high volatility, especially in the altcoin market. He said, “When you have corrections on Bitcoin/US dollar [pair] during the pre-halving year, liquidity in the altcoin market dries up quite substantially.”

Crypto traders should be aware of a possible correction before the halving and be ready to settle the storm with courage. Cowen said, “I think Bitcoin will have one more scare later this year [or] early next year at the latest. Right before the halving basically, sometime before the halving where it will test people’s resolve.”

Cowen has warned Bitcoin investors not to make a hasty decision and not to panic sell during the forthcoming market downturn. He said that the investors should always “check their own risk profile, so they don’t make any reckless decisions with their capital”.

It's highly expected that Bitcoin prices will fluctuate even more when the halving is coming closer. Since the halving reduces block rewards issued to miners, there will be lesser tokens in circulation which will likely result in a higher Bitcoin price.

Cowen advises investors to keep up with the halving cycle as well other news related to the cryptocurrency market in order to get an idea about which type of asset or portfolio would be suitable for them. Before entering into the crypto market, investors should do their own research to learn about the cryptocurrency market and study their own risk profile that suits their needs.



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