Famous crypto analyst Benjamin Cowen, Bitcoin $101,003.1He stated that (BTC) is not expected to provide returns as high as in the last market cycle. Cowen said in his latest market analysis that Bitcoin’s return on investment (ROI) may be down from two cycles ago.
ROI Compared to History
“Two cycles ago – so market cycle three – Bitcoin’s ROI in that cycle was about 5.55x,” Cowen said. Currently, Bitcoin’s measured ROI from the low end is between 6.1-7x.” he said. He stated that the ROI at the same point in the previous cycle was 9.9x. This data shows that the ROI of the current cycle is trending between the last two cycles.
Cowen predicts that returns will decrease as Bitcoin’s market value increases.
“This is the same situation as in the last cycle, when everyone was discussing the decline in yields and disagreed that this would continue until the end. “Many people thought this would continue, and it’s okay to think so.”
Historical Data and Expectations
“The past seems to be repeating itself,” Cowen said. While in the last cycle the ROI was higher than the previous cycle, it remained below previous levels as we approached the end of the cycle.” he added. He also said, “We may see a similar situation this time; “Even though everything seems fine at first, at some point returns will start to decline.” he said.
“Two cycles ago, Bitcoin’s rise from the bottom was a 100x move. “In cycles that progress to these levels, much more money is required for market movement and for growth from there.” —Benjamin Cowen
Currently, Bitcoin is trading at $101,100, down 1% in the last 24 hours. In this cycle, if the decrease is proportionate compared to the previous cycle, BTC can be expected to complete its peak above 120 thousand dollars.
These analyzes offer Bitcoin investors an opportunity to re-evaluate their return expectations over market cycles. Understanding how larger market caps can impact potential returns can be important in shaping investment strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
