Bitcoin’s roughly $40,000 loss from its early October peak equals about a 30% haircut — but the cryptocurrency still fetches far more than its current fair-market value.
That’s according to a bitcoin
BTCUSD valuation model based on something known as Metcalfe’s Law, which assumes that the value of a network is a function of the number of users. I last wrote about this model in September 2024 — and by its calculation bitcoin was already overvalued at that point. But the cryptocurrency nonetheless more than doubled since then, and the model fell into disfavor.
Bitcoin is in a bear market — and it’s still overvalued by almost 40%
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Bitcoin’s roughly $40,000 loss from its early October peak equals about a 30% haircut — but the cryptocurrency still fetches far more than its current fair-market value.
That’s according to a bitcoin
BTCUSD valuation model based on something known as Metcalfe’s Law, which assumes that the value of a network is a function of the number of users. I last wrote about this model in September 2024 — and by its calculation bitcoin was already overvalued at that point. But the cryptocurrency nonetheless more than doubled since then, and the model fell into disfavor.
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