Analyst Bullish on Bitcoin and Ethereum: Severely Undervalued Top Assets

Bitcoin and Ethereum are "severely undervalued" assets, according to Milk Road analyst John Gillen.

However, he said market participants who missed the recent rally should avoid "panic buying" at higher prices.

Why Was Last Week's Crypto Rebound Inevitable?

Speaking on the Milk Road podcast on Monday, Gillen noted that before last week's surge, Bitcoin's volatility had dropped to levels seen only 6% of the time in its entire history.

Trading volume was at historic lows, open interest was climbing, and the market was heavily short-biased.

Two unpriced catalysts flipped the script: Treasury Secretary Scott Bessent announced an expanded bond buyback program, and President Donald Trump mentioned Hyperliquid at the White House.

Together, these events triggered over $4 billion in short liquidations and Bitcoin's largest weekly dollar gain on record.

The signal Gillen is now watching is whether spot volume continues to support the move — and so far it has, with ETF inflows and spot market buying sustaining the rally since the short squeeze.

Gillen on Deploying Cash

Gillen told listeners he won't chase the current price, instead waiting for one of two setups before deploying remaining cash.

Either Bitcoin closes a weekly candle above $82,000–$83,000, confirming a technical bull market, or it pulls back to the $70,000–$74,000 range to form a higher low — which would offer a cleaner entry.

He said buying at current levels before confirmation is poor risk management.

For investors feeling FOMO, Gillen suggested building a small position using 5%–10% of planned capital — not to complete the allocation, but to ease emotional pressure and allow clearer thinking on the rest.

Why Is Gillen Most Bullish on Ethereum?

Gillen called Ethereum the most misunderstood asset in the market today, pointing to tokenization, stablecoins, and AI-agent payments all converging on its ecosystem:

Ethereum accounts for 65% of the tokenized real-world asset market

Ethereum holds 52.9% of total stablecoin market cap

Robinhood and Coinbase are both building their own chains on Ethereum, reinforcing its role as the neutral settlement layer for next-generation finance

"Nobody holds any ETH," Gillen said. "Nobody holds any Bitcoin. And they're the two best assets in the market."

If momentum continues, he expects Bitcoin to break above $82,000 within the next week — calling it a coin flip between confirming a technical bull market or forming a higher low before the next attempt.