Analyst Benjamin Cowen is predicting that crypto property might not have bottomed out but regardless of the rise in costs thus far this yr.
Cowen tells his 784,000 YouTube subscribers in a brand new video that the overall market cap for crypto property might drop to beneath $500 billion.
The overall crypto market cap is $1.14 trillion at time of writing.
“I imagine that the worst case state of affairs for the overall market cap is someplace between $400 and $500 billion, which might primarily characterize one other 50% transfer to the draw back from these ranges.
Which is type of loopy to consider. I don’t actually suppose it’s a typical state of affairs that lots of people are even contemplating.”
Whereas asserting that Bitcoin (BTC) didn’t fall as a lot from its all-time excessive final yr in comparison with what occurred in the course of the earlier cycles, Cowen says that the flagship crypto asset might backside out near the 2022 low of about $15,500 if the worst-case state of affairs materializes.
“We didn’t go as little as we went in the course of the prior three cycles, however nonetheless fairly good worth.
And should you purchased Bitcoin at $15,000, $16,000, $17,000, or $18,000 even when we do finally go decrease, it’s in all probability not that removed from the underside. So long run I feel you’ll be high-quality even when the worst-case state of affairs does play out.”
Cowen, nonetheless, says that based mostly on how lengthy earlier bear crypto markets have lasted, there’s a “probability” that the underside might already be in.
“There’s at all times an opportunity that the underside’s in. From a time-based perspective, you possibly can argue that it’s. However even whether it is, you’re nonetheless probably a little bit of a chop for some time.”
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