Bitcoin Power Law

It is a model that attempts to explain historical Bitcoin price trends using a mathematical concept called power law distribution.

This theory was initially proposed by @Giovann35084111 and what it suggests is that there is a correlation between the price of Bitcoin and the time since its inception.

  • BTC Power law model:

    This model suggests that the price of Bitcoin follows this mathematical formula where the price increases as a power of time.
    1.0117e-17 * (days since genesis block)^5.82

  • BTC Power law oscillator:

    The minimum or floor price is the one predicted by the model multiplied by 0.42. Historically speaking, the minimum price of bitcoin has been 58% below its fair price.
    This price floor has only failed once: on March 13, 2020, where the price fell below the floor for just a few hours due to the black swan pandemic crash.

  • Important points to consider:

    The power law is a theoretical model and, like any model, may not perfectly represent reality. The price of Bitcoin is influenced by several factors and future performance could deviate from the historical trend.
    The power law model is better suited for understanding long-term trends than short-term price movements.

Overall, the Bitcoin Power Law offers a way to analyze Bitcoin's price history and potentially its long-term trajectory. However, it is essential to remember that this is just a model and that you should consider other factors before making any investment decisions.