Source: dailyhodl.com
Analyst Benjamin Cowen is predicting that crypto assets may not have bottomed out yet despite the increase in prices so far this year.
Cowen tells his 784,000 YouTube subscribers in a new video that the total market cap for crypto assets could drop to below $500 billion.
The total crypto market cap is $1.14 trillion at time of writing.
“I believe that the worst case scenario for the total market cap is somewhere between $400 and $500 billion, which would essentially represent another 50% move to the downside from these levels.
Which is kind of crazy to think about. I don’t really think it’s a common scenario that a lot of people are even considering.”
While asserting that Bitcoin (BTC) did not fall as much from its all-time high last year compared to what happened during the previous cycles, Cowen says that the flagship crypto asset could bottom out close to the 2022 low of about $15,500 if the worst-case scenario materializes.
“We did not go as low as we went during the prior three cycles, but still pretty good value.
And if you bought Bitcoin at $15,000, $16,000, $17,000, or $18,000 even if we do eventually go lower, it’s probably not that far from the bottom. So long term I think you’ll be fine even if the worst-case scenario does play out.”
Cowen, however, says that based on how long previous bear crypto markets have lasted, there’s a “chance” that the bottom could already be in.
“There’s always a chance that the bottom’s in. From a time-based perspective, you could argue that it is. But even if it is, you’re still likely looking at a bit of a chop for a while.”
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