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 ‘fair price’ of $61,594, aligning with the projected power law price.
Power law model for Bitcoin’s price (Source: Bitcoin fair price)
First posited by Giovanni Santostasi, the Bitcoin Power Law is a model that attempts to predict Bitcoin’s 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’s growth.
The model distinguishes between “fair price” (the trend line representing an average valuation) and “bottom price” (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’s creation (Genesis Block) and a specific expone
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