Analyst Benjamin Cowen has laid out the worst-case scenario for Bitcoin and the crypto market in general.
In a new video he shared for his 765,000 YouTube subscribers, Cowen explained where the digital asset markets could end. For this, the analyst pointed to the notorious bursting of the dot-com bubble.
Looking at the total market value of all crypto assets, the analyst predicts a decline towards around $760 billion. At this point, Cowen says a 60% jump would be commensurate with the jump witnessed in the dot-com era, bringing the total market value back to $1 trillion.
Cowen adds that whenever that happens, the markets will hit a very difficult point.
“If we get a 60% jump from a future bottom – let’s say by the end of this year – a lot of people will assume it’s the bottom and to some extent I’ll probably assume it’s the bottom…
However, we must always remember that there is no certainty when it comes to investing, that no matter how confident you are that something will happen, there is always a risk you take on. And if it moves in the same way as the dot-com bubble, we could see another 27% drop to the real bottom from that point on the next low.”
If this market structure happens, the combined market cap of all cryptocurrencies will eventually hit a bottom of around $500 billion. On the other hand, Cowen points out that there is never any certainty in the markets and also considers the possibility that the bulls can form consistent support that the bottom of Bitcoin is already there.
“This is something to consider. This is worst case scenario. I have no idea if it will work, but I think it’s something everyone should consider when navigating the crypto universe.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.