bitcoin Benjamin Cowen, who gained popularity with his (BTC) analysis, shared his new prediction. According to the analyst, BTC is currently trading at a price below its value.
Conducting an interview with Real Vision Crypto channel, Cowen used a logarithmic regression model. According to Cowen, cryptocurrencies are largely undervalued according to the logarithmic regression model.
“This painting is something I have shown several times in the past. The blue line is the total cryptocurrency market cap. The red line is what is called the fair value logarithmic regression trend line.
The logic is that the fair value of the asset class (crypto) increases monotonously over time. We oscillate around fair value. Currently, data shows that we are valuing less than approximately 50% of where fair value is located.”
When Will Bitcoin Price Fix?
As we reported on Koinfinans.com, Cowen warned that while the current valuation of crypto assets seems attractive to long-term investors, the asset class could still drop another 15%.
“But the chart also shows that big bottoms are usually between 60% and 65% closer to undervalue before we can really drive another bull market…
We need a little more time before we really get out of this bear market.”
Cowen, give details of your Bitcoin analysis. The analyst also stated that it will take more than 14 months to return to fair value.
“Bitcoin’s price has always been at its fair value during the halving. Thus, each bear market goes below fair value. Right after that, when we get to the next Bitcoin halving, that’s where the price is.
So I would say this will happen so we can get back to fair value, my guess will be 2024. My guess is early 2024.”
You can follow the current price action here.
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.