Crypto Market Cap Hits Lowest Value Since 2010 as Analyst Warns of Further Decline

Cryptocurrency markets have fallen to their steepest discount to long-term trend since 2010, according to analyst Benjamin Cowen. The total market cap stands at $2.152 trillion, which is 62.49% undervalued compared to the model's fair value of $5.737 trillion. This level of undervaluation has only been seen once before: on September 20, 2010, when it hit 32.72%.

Cowen expects one more leg down in the third quarter, citing midterm-year seasonality and rising bond yields as likely triggers. He notes that August and September have historically been months of weakness for cryptocurrency markets. The pattern is consistent across midterm years: August and September turned red in 2014, 2018, and 2022.

Bitcoin trades near $62,648, down 45% year-over-year, with a potential 10% drop below $60,000. Rising yields, outflows from crypto funds, and shrinking stablecoin supply add pressure to the market. Cowen suggests that investors adopt a long-term Dollar Cost Averaging (DCA) strategy but prepare for short-term fluctuations.