Benjamin Cowen Thinks Crypto Assets Are 50% Underpriced
The well-known crypto analyst who continues to establish a following with timely Bitcoin (BTC) research asserts that the king cryptocurrency is severely undervalued.
Cowen claims in a recent interview on the Real Vision Crypto channel that crypto assets are grossly undervalued based on the logarithmic regression model.
“I’ve shown this chart many times in the past. The blue line represents the overall market capitalization of cryptocurrencies. The red line is the trendline of fair value logarithmic regression.
The underlying concept is that the fair value of the asset class [crypto] rises monotonically with time and that we tend to bounce around this fair value. Currently, the numbers indicate that we are around 50 percent, undervalued relative, to our fair value.”
Even while the present price of cryptocurrencies may seem beneficial to long-term investors, Cowen cautions that the asset class might fall another 15%. “We still need a little more time before we can really emerge from this bear market.”
Turning to Bitcoin, Cowen estimates that it would likely be over 14 months before the flagship cryptocurrency returns to its true value. “At its halving, Bitcoin’s price has always been at its fair value.
In every bear market, the price falls below the fair value, and by the time the next Bitcoin halving occurs, that is where the price is.
“So, if we are to regain our true worth, I would estimate that it will occur in 2024, at the earliest. Early 2024 is my best estimate.”