Major Altcoins Are 50% Undervalued: Crypto Analyst Benjamin Cowen

• Crypto analyst Benjamin Cowen says BTC is undervalued.
• He predicts a Bitcoin rally.
• Bitcoin value has dipped 0.4% in the past 24 hours.

For the past week, Bitcoin has traded at a steady price range of $18,000 to $20,000. However, on October 23, it fell by 0.4% in the last 24 hours, demonstrating minor price movement. 

Bitcoin price movement analyst, Benjamin Cowen stated that Bitcoin is still significantly undervalued in a recent interview. According to his logarithmic regression study, most crypto assets are undervalued against their original market worth.

As per his theory, the fair value of all asset classes considered as crypto grows in value over time while the price fluctuates around the fair value. Moreover, the data indicates that crypto assets are fifty percent undervalued compared to their fair value.

Cowen further warns that cryptocurrencies may suffer another 15% decline in value even though the current price seems attractive to long-term investors. 

“I’ve shown this chart before, and it’s been useful. Total market cap for all cryptocurrencies is shown in blue. Fair value logarithmic regression trendline is shown in red,” said Cowen while explaining that major bottoms usually appear to levels close to 60% to 65% undervalued before another bull market can be sustained. 

Cowen adds it will take a while before the market recovers from the current bear market, estimating another year and four months before Bitcoin can grow back to its fair value. 

“The price of Bitcoin has always been at its fair value at the time when it has been halved,” Cowen concludes. Hence, every bear market we experience reduces Bitcoin’s price below its true worth. Therefore, by the time the next Bitcoin halving occurs, the price returns to its prior level.