Bitcoin and Ethereum 'Underowned,' Analyst Says, But Warns Against Panic-Chasing

John Gillen, an analyst at Milk Road, believes that Bitcoin and Ethereum are significantly underowned assets. He claims that they are two of the best assets in the market.

Gillen points out that Bitcoin's volatility has dropped to levels seen only 6% of its entire history before last week's price explosion. He notes that volume was historically low, open interest was climbing, and the market was positioned for further downside.

However, two unpriced catalysts triggered over $4 billion in short liquidations and Bitcoin's largest weekly dollar gain on record: Treasury Secretary Scott Bessent announced expanded bond buybacks, and President Donald Trump named Hyperliquid at the White House. Now, Gillen is watching whether spot volume continues to support the move.

Gillen advises against panic-chasing and suggests taking 5-10% of intended capital to get a small position in Bitcoin or Ethereum. He believes that confirmation of a technical bull market would come if Bitcoin closes above $82,000-$83,000 or pulls back into the $70,000-$74,000 range for a higher-low entry.

Gillen is particularly bullish on Ethereum, calling it the most misunderstood asset in the market. He notes that Ethereum holds 65% of the tokenized real-world asset market and 52.9% of total stablecoin market cap. Additionally, Robinhood and Coinbase are building their own chains on Ethereum, reinforcing its role as a neutral settlement layer.