A fresh logarithmic scale analysis of the cryptocurrency and Bitcoin market data suggests a massive upcoming valuation rise. However, what is behind this new logarithmic prediction – and could the crypto market really reach an $11 trillion valuation?
Will the total crypto market be worth $11 trillion in three years?
This fresh valuation prediction comes from Benjamin Cowen. Although Cowen has long been known to look at potential price increases of Bitcoin, he is now gazing at the cryptocurrency market as a whole.
Moreover, he has reportedly found data that suggests the entire cryptocurrency market could skyrocket to a massive $11 trillion valuation. Furthermore, this would supposedly happen just in the three coming years.
Nevertheless, Cowen’s model is not entirely perfect. He admits that it is difficult to predict the next peak of the cryptocurrency market, seeing as some altcoins have seen massive gains. This has distorted the model somewhat.
With that said, however, Cowen is using data sets of correlations from the cryptocurrency market to build his trend line. If Cowen’s most ambitious – i.e. altcoin bullish – trend line ends up coming true, this would see the crypto market’s valuation surge to $32 trillion by 2023,
$32 trillion is an absolutely massive number, and Cowen admits that this estimation may be exaggerated, However, Cowen’s more conservative analysis takes into account that not all cryptocurrencies will grow,
A Bitcoin price of $141,000?
Furthermore, different parts of the cryptocurrency market can perform in vastly different ways to others, This, in conjunction with the realization that periods from the one peak valuation to the next peak valuation are increasing, made Cowen tweak his model.
Nonetheless, even this quite conservative model gives an impressive approximation of a crypto valuation of around $11 trillion at the markets “next peak”. Moreover, this peak is said to come in 2023 – although this timing is also supposedly uncertain.
Cowen also suggests that although there is not currently an altcoin bubble, as some suggest, Bitcoin will still continue to lead the cryptocurrency market. Although the model accommodates for a notable decline in Bitcoin dominance, it pegs the 2023 Bitcoin price at approximately $141,000.
This comes following other predictions of a Bitcoin price in excess of $100,000. Although this lofty price prediction may seem exaggerated, there is now a growing number of analysts who independently reach a future Bitcoin price of over $100,000.
If true, this would mean that the most important question becomes about the timing of the next peak market valuation.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.