Benjamin Cowen Predicts Precious Metals Outperformance in 2026 Crypto Market Analysis

VADODARA, January 21, 2026 — Benjamin Cowen, founder of IntoTheCryptoverse, predicted on X that precious metals are likely to outperform cryptocurrencies this year, mirroring 2025's trend. This daily crypto analysis examines the structural implications for Bitcoin, currently trading at $88,092 with a 24-hour decline of 4.58%, as market structure suggests a potential liquidity grab at key support levels.

Market Context & Background

Historical cycles indicate that precious metals and cryptocurrencies exhibit inverse correlation during periods of macroeconomic uncertainty. According to FederalReserve.gov data on monetary policy, rising real yields typically pressure risk assets while benefiting hard assets. The 2025 outperformance of precious metals created a Fair Value Gap (FVG) in crypto valuations that remains unresolved. Underlying this trend is the post-merge issuance schedule for Ethereum, which has altered the supply dynamics of major digital assets. Related developments include recent market stress events, such as the $350 million futures liquidation that highlighted volatility risks.

What Happened?

On January 21, 2026, Benjamin Cowen stated via X that precious metals are likely to outperform cryptocurrencies this year, continuing last year's pattern. He warned that a major correction in precious metals could occur later in 2026, potentially triggering an even sharper decline in cryptocurrencies. Cowen advised traders to operate based on existing market conditions rather than desired outcomes. According to the source data from Coinness.com, this prediction comes amid Bitcoin testing critical support at $89,000, with the Crypto Fear & Greed Index at 32/100 indicating extreme fear.

Technical Analysis & Price Action

Market structure suggests Bitcoin is consolidating within a descending wedge pattern, with immediate support at the $89,000 volume profile node. The 50-day moving average at $90,500 acts as dynamic resistance, while the 200-day moving average at $85,200 provides longer-term support. RSI readings at 42 indicate neutral momentum with bearish divergence on higher timeframes. A Bullish Invalidation level is set at $85,000, where breakage would confirm a larger correction toward the $82,000 Fibonacci support. Conversely, a Bearish Invalidation level sits at $92,500, where sustained trading above would negate the current downtrend structure. This technical setup aligns with recent Bitcoin price action tests at $89k support amid market fear.

By The Numbers

Why It Matters

For institutional investors, this prediction signals potential rotation from digital to hard assets, affecting capital flows into Bitcoin ETFs and altcoin allocations. Retail traders face increased volatility risk, particularly in leveraged positions where gamma squeeze dynamics could amplify losses. The correlation breakdown between crypto and traditional risk assets suggests portfolio diversification strategies require recalibration. According to on-chain data from Glassnode, exchange outflows have increased, indicating accumulation at lower levels despite the fear sentiment.

Community Sentiment

Market analysts on X have expressed divided views. Bulls argue that Bitcoin's network fundamentals remain strong despite price weakness, pointing to hash rate stability and institutional adoption. Bears highlight the technical breakdown below $90,000 as confirmation of Cowen's thesis. One quantitative trader noted, "The order block at $89,000 represents a liquidity pool that must hold for any bullish scenario to remain valid." This sentiment echoes concerns from recent events like the 250 million USDC mint signaling institutional liquidity grab.

Price Prediction / Future Outlook

Bullish Case: If Bitcoin holds the $89,000 support and reclaims the $92,500 resistance, a rally toward $96,000 becomes probable. This scenario requires precious metals to underperform expectations, driving capital back into crypto markets. EIP-4844 implementation on Ethereum could provide fundamental support for altcoins.

Bearish Case: Break below $85,000 invalidates the bullish structure, targeting $82,000 Fibonacci support. A precious metals correction later in 2026, as Cowen warned, could trigger cascading liquidations in crypto derivatives markets. This would confirm the outperformance thesis and extend the fear cycle.