Bitcoin falls to lowest Power Law valuation zone since FTX collapse
Bitcoin briefly fell below $66,000 and is now trading near the lower end of the Power Law corridor, a level that has often preceded rebounds. The Power Law model, developed by Giovanni Santostasi and refined by Porkopolis Economics, maps bitcoin’s price on a logarithmic scale and suggests long-term growth slows as the network matures. Unlike cycle models tied to the four-year halving schedule, it treats bitcoin as following a natural deceleration trend over time. Data from Checkonchain show bitcoin has been more expensive than today for about 95.6% of its trading history under this model. Past visits to similar levels lined up with major stress events, including the March 2020 pandemic selloff and the November 2022 FTX collapse, both followed by strong recoveries. The model does not guarantee a bottom, but it signals bitcoin is trading near a historically deep discount versus trend.
