Analyst Benjamin Cowen is predicting that crypto belongings might not have bottomed out but regardless of the rise in costs up to now this yr.
Cowen tells his 784,000 YouTube subscribers in a brand new video that the overall market cap for crypto belongings might drop to beneath $500 billion.
The full 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 symbolize one other 50% transfer to the draw back from these ranges.
Which is sort of loopy to consider. I don’t actually assume 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 through 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 through the prior three cycles, however nonetheless fairly good worth.
And if you happen to purchased Bitcoin at $15,000, $16,000, $17,000, or $18,000 even when we do ultimately go decrease, it’s in all probability not that removed from the underside. So long run I believe you’ll be superb even when the worst-case state of affairs does play out.”
Cowen, nevertheless, says that based mostly on how lengthy earlier bear crypto markets have lasted, there’s a “likelihood” that the underside might already be in.
“There’s all the time an opportunity that the underside’s in. From a time-based perspective, you may argue that it’s. However even whether it is, you’re nonetheless possible taking a look at a little bit of a chop for some time.”
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