Is BTC Worth $98,000 at the Current Activity Level of the Bitcoin Network
- Bitcoin price reached $98,000, but decreased network activity raises questions about its valuation.
- Bitcoin’s ascension to $98,000 coincided with weakening network fundamentals.
The Bitcoin price [BTC] experienced a decline after surpassing $100,000 and recently settled around $98,000. While investors may feel optimistic at these levels, crucial on-chain metrics present a different narrative.
A noticeable drop in network activity has reached its lowest point in a year, casting doubt on whether such price points are justifiable.
The Discrepant Valuation of Bitcoin Compared to Network Activity?
After sliding from over six figures back down to $98,000, an examination of the network activity reveals that the cryptocurrency may be valued too high currently.
Keen analysis based on Metcalfe’s Law—an approach valuing networks according to user engagement—suggests that Bitcoin’s legitimate worth lies between $48,000 and $95,000..
This places BTC above acknowledged value levels leading many to ponder sustainability concerns going forward..
Your Source: CryptoQuant (19659014) Historical Metcalfe value bands reveal potential perceptible divergence affecting Bitcoin price behavior since February 2024. The blockchain currency mostly floated within red ($48k) and blue ($95k) delineations during this period suggesting speculative premium additional triggered by forces like ETF investments or macroeconomic enthusiasm.
p>
Could Networking Drop Signal Impending Trouble?
Diving deeper into Bitcoin’s foundational mechanisms reveals dwindling daily active addresses—a critical metric indicative of user interaction. p >
This diminishing figure aligns with declining momentum witnessed through Metcalfe bands beginning March 2024 showcasing waning blockchain activities. p >
