Here’s the Worst Case Scenario for Bitcoin and Crypto Markets, According to Analyst Benjamin Cowen
Analyst Benjamin Cowen is detailing a possible worst case situation for Bitcoin and the crypto markets at massive.
In a brand new video to his 765,000 YouTube subscribers, Cowen appears on the dot-com bubble’s notorious burst for clues on the place digital asset markets might find yourself.
Wanting on the complete market cap of all crypto belongings, the analyst says the present pullback may proceed to drop to concerning the $760 billion mark.
At that time, Cowen says a 60% bounce could be proportional to a bounce witnessed within the dot-com period, bringing the whole market cap again to the $1 trillion degree.
If and when that occurs, Cowen says the markets will land in a really difficult spot.
“If we do get a 60% bounce off a future backside – let’s say it occurs on the finish of the 12 months – lots of people would assume that’s the underside and to a point I’d in all probability assume that’s the underside…
However we should always at all times do not forget that there isn’t any positive factor almost about investing there’s at all times a threat that you just’re taking up irrespective of how assured you’re that one thing will play out.
And if it had been to play out the identical manner because the dot-com bubble then that subsequent low you’ll nonetheless see from that time one other 27% drop to the precise backside.”
If this market construction performs out, the whole market cap of all cryptocurrencies would lastly attain a backside at across the $500 billion mark.
Cowen cautions that there’s by no means certainty in markets, and says bulls could make a coherent case that the underside for Bitcoin is already in.
He tells merchants it’s by no means a nasty concept to maintain some money readily available in case markets transfer decrease than you assume is probably going or potential.
“That is one thing to think about. It’s the worst case situation. I don’t know if it’s going to play out or not, however it’s one thing that everybody I believe ought to take into account when navigating the cryptoverse.
I believe lots of people have burned prior to now. It’s good to be taught your lesson in the event you haven’t already and perceive the draw back threat with cryptocurrency. If we do see one other leg down it’s going to take lots of people unexpectedly.”
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