In a recent conversation with the Real Vision Crypto channel, Cowen said the undervaluation of crypto assets is due to the logarithmic regression model. Cowen has stacked up a massive following on YouTube thanks to his continuous and timely analysis of Bitcoin.
He also mentioned that Bitcoin is grossly undervalued but predicts when Bitcoin may rally to its fair value. However, a few days back, Cowen claimed that BTC could witness another capitulation, and it is on its way to printing a fresh bear market low.
Are Crypto assets Undervalued?
Multiple on-chain data suggest that crypto assets are 50% undervalued compared to their fair value. Moreover, Cowen said the current crypto market valuation might look enticing to investors, but the asset may still fall an additional 15%.
He also said that major bottoms must occur closer to only 60 – 65% of crypto undervaluation before the market can start another bull market run. “We need more time before we can claw our way out of this bear market.”
Also read:During his interview with the Real Vision Crypto channel, Cowen forecasted that Bitcoin would return to its fair value in 14 months. In his words, “Bitcoin’s price has always been at its fair value when it’s halving.”
This means that Bitcoin’s price goes below its fair value during every bear market. But during the BTC halving, it rallies to its fair price. Therefore, for BTC to be back at its fair price, it would take another 14 months (or 2024), according to Cowen.
But, he explained, “I mean, for Bitcoin to get back up to the fair value, I would say it’s likely going to occur in 2024.” A few days ago, Cowen stated that he thinks BTC may witness another sell-off event while speaking during one of his recently released YouTube videos.
He informs his audience that BTC’s return on investment (ROI) indicates that the leading digital asset may head for another capitulation event. In addition, Bitcoin tends to print a bear market bottom when the annual ROI indicator hits the 0.2 mark.
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