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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Source: https://dailyhodl.com/2023/02/23/top-analyst-says-610000000000-in-bitcoin-and-crypto-could-be-wiped-out-in-worst-case-scenario/