Bitcoin Power Law Suggests 'Coiled Spring' Poised for Surge to $512K by 2025

yesterday / 09:08

According to long-term power-law models, Bitcoin's price is positioned like a "coiled spring" ready to unleash significant upside potential, with analyst Adam Livingston highlighting a fair value of $142,000 and an upper band projection of approximately $512,000 by December 31, 2025. The lower end of the range is estimated just above $50,000, based on historical patterns where Bitcoin either surges due to undervaluation or dips briefly before rallying stronger.

Livingston emphasized that Bitcoin's price has been "hugging" the fair value line since March 2024, a rare occurrence indicative of an imminent explosion higher. This analysis comes amid recent market turbulence, including a steep October plunge that dropped Bitcoin below the $100,000 psychological level, leading to revised forecasts from other firms. Galaxy adjusted its end-of-2025 prediction from $180,000 to $120,000, citing the crash, market maturation, and competition from narratives like AI, while Ark Invest's Cathie Wood cut her long-term estimate by $300,000, pointing to stablecoins eroding Bitcoin's demand in emerging markets.

Despite these adjustments, underlying factors support bullish sentiment, including ETP institutional inflows, miners holding more Bitcoin post-halving, and long-term holders near all-time highs, signaling accumulation rather than panic. Improved regulatory clarity and macroeconomic pressures, such as inflationary trends, further bolster Bitcoin's role as a hedge.