{"id":14803,"date":"2024-02-28T18:40:29","date_gmt":"2024-02-28T18:40:29","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=14803"},"modified":"2024-02-28T18:40:30","modified_gmt":"2024-02-28T18:40:30","slug":"at-61594-bitcoin-is-at-fair-market-price-according-to-the-power-law-model","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=14803","title":{"rendered":"At $61,594 Bitcoin is at fair market price according to the power law model"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>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 &#8216;fair price&#8217; of $61,594, aligning with the projected power law price.<\/p>\n<p>Power law model for Bitcoin&#8217;s price (Source: Bitcoin fair price)<\/p>\n<p>First posited by Giovanni Santostasi, the Bitcoin Power Law is a model that attempts to predict Bitcoin&#8217;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&#8217;s growth.<\/p>\n<p>The model distinguishes between &#8220;fair price&#8221; (the trend line representing an average valuation) and &#8220;bottom price&#8221; (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&#8217;s creation (Genesis Block) and a specific exponent:<\/p>\n<p>Fair Price = 1.0117e-17*(days since Genesis Block)^5.82.<\/p>\n<p>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 &#8216;fair price,&#8217; indicating it is heading toward the bull market &#8216;bubble&#8217; identified as a key component of each Bitcoin halving cycle within the power model.<\/p>\n<p>Bitcoin power law chart (@Giovann35084111)<\/p>\n<p>Within the power law model, the price deviates from the &#8216;fair value&#8217; 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&#8217;s 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&#8217;s price.<\/p>\n<p>The post At $61,594 Bitcoin is at fair market price according to the power law model appeared first on CryptoSlate.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/over-62000-bitcoin-is-around-fair-market-price-according-to-the-power-law-model\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8216;fair price&#8217; of $61,594, aligning with the projected power law price. Power law model for Bitcoin&#8217;s price (Source: Bitcoin [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14804,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-14803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/14803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14803"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/14803\/revisions"}],"predecessor-version":[{"id":14805,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/14803\/revisions\/14805"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/14804"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}