crypto analyst Benjamin Cowenshared a “worst case” scenario as markets continued to depreciate.
Cowen, who shared the video on his YouTube channel, cryptocurrency believes that the market may be facing a correction similar to the dot-com crash.
There are many similarities between the tech stock crash in the dot-com era and the crypto crash we see today.
Cowen draws parallels with today’s crypto markets by examining the performance of the Nasdaq in the dot-com era. bitcoin and uses market rise and fall percentages over the dot-com era to show where the total market cap of other cryptos could go.
Koinfinans.com As we reported, the analyst underlined that the combined market cap of all crypto-assets could register a similar phase of capitulation in 2022, where the Nasdaq fell by around 30% before bottoming out.
According to the analyst, if we fall 30% below the previous low, the total market capitalization will be around 500 billion. Which means it will be a very drastic fix. However, in the worst case scenario, it is possible to reach a market value of $ 400 billion. At the time of the news, the total value was around 960 billion dollars.
The analyst underlined that in case of such a decrease, the process could spread over a period of two to three years. However, he stated that despite all this bad scenario, he maintained his estimation that the bottom prices may have already arrived.
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