{"id":255989,"date":"2024-02-28T22:53:58","date_gmt":"2024-02-28T17:23:58","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=255989"},"modified":"2024-02-28T22:53:58","modified_gmt":"2024-02-28T17:23:58","slug":"over-62000-bitcoin-is-around-fair-market-price-according-to-the-power-law-model-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/over-62000-bitcoin-is-around-fair-market-price-according-to-the-power-law-model-crypto-news\/","title":{"rendered":"Over $62,000 Bitcoin is around fair market price according to the power law model – Crypto News"},"content":{"rendered":"

<\/p>\n

On a monumental day for Bitcoin<\/a>, where it opened at $56,900, the flagship digital asset has officially exited the bear market according to the Bitcoin Power Law model<\/a>. After surpassing $61,000, it has now reached the \u2018fair price\u2019 of $61,594<\/a>, aligning with the projected power law price.<\/p>\n

Power law model for Bitcoin\u2019s price (Source: Bitcoin fair price)<\/figcaption><\/figure>\n

First posited<\/a> by Giovanni Santostasi, the Bitcoin Power Law is a model that attempts to predict Bitcoin\u2019s long-term price trajectory based on its historical tendency to follow a roughly straight line when plotted on a logarithmic scale. This pattern suggests an underlying pattern to Bitcoin\u2019s growth.<\/p>\n

The model distinguishes between \u201cfair price\u201d (the trend line representing an average valuation) and \u201cbottom price\u201d (historically about 58% below the fair price, indicating a potential floor). These values are calculated using a formula based on the number of days since Bitcoin\u2019s creation (Genesis Block) and a specific exponent:<\/p>\n

\n

Fair Price = 1.0117e-17*(days since Genesis Block)^5.82.<\/p>\n<\/blockquote>\n

The chart below shows a section of the power law model and its relative fair price as shared by Santostasi on Feb. 25. Bitcoin has since passed the current \u2018fair price,\u2019 indicating it is heading toward the bull market \u2018bubble\u2019 identified as a key component of each Bitcoin halving cycle within the power model.<\/p>\n

\"Bitcoin
Bitcoin power law chart (@Giovann35084111)<\/figcaption><\/figure>\n

Within the power law model, the price deviates from the \u2018fair value\u2019 above and below during bull and bear markets but ultimately returns to the fair value over time. Historically, the model has been highly accurate. However, it\u2019s important to note that this is a model, and while it has held up surprisingly well at times, market forces can change, and the model cannot account for all factors potentially influencing Bitcoin\u2019s price<\/a>.<\/p>\n

The post Over $62,000 Bitcoin is around fair market price according to the power law model<\/a> appeared first on CryptoSlate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

On a monumental day for Bitcoin, where it opened at $56,900, the flagship digital asset has officially exited the bear market according to the Bitcoin Power Law model. After surpassing $61,000, it has now reached the \u2018fair price\u2019 of $61,594, aligning with the projected power law price. Power law model for Bitcoin\u2019s price (Source: Bitcoin […]<\/p>\n","protected":false},"author":2,"featured_media":255990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-255989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/255989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=255989"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/255989\/revisions"}],"predecessor-version":[{"id":255991,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/255989\/revisions\/255991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/255990"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=255989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=255989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=255989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}