The long-term power-law model for Bitcoin’s price growth suggests that the digital asset appears positioned like a “coiled spring” ready to release, with the current trading range indicating potential upside ahead rather than downside risk.
Writer and analyst Adam Livingston, who has also utilized the BTC power law –that places it at a “fair value” at $142k – has suggested investors will likely see a rise in the asset soon.
Based on the long-term power-law model of Bitcoin price growth, there remains considerable potential energy in this asset, and it is poised like a “coiled spring” to unleash upside rather than risk to the downside. Rebel analyst and writer Adam Livingston, a proponent of both BTC and the power law, which suggests that BTC’s “fair value” is closer to $142,000, believes that prices are likely to rise.
The upper-band price for the leading cryptocurrency by December 31, 2025, is projected to be approximately $512,000, while the fair-value price is around $142,000, with the low end of the range coming in just north of the $50,000 level, according to Livingston.
The fact that price has been “hugging” the fair value line since March 2024 is rare and indicative of an imminent explosion higher for Bitcoin, Livingston said. Historically speaking, he noted that whenever Bitcoin achieved its current level versus the long-term power-law, it either experienced a major surge due to being undervalued or had a short dip below this band before rallying to make moves even stronger.
Bitcoin market shows resilience amid sell-offs
Bitcoin has seen huge price fluctuations this year, including several steep trading liquidations and a severe plunge last month that dropped the value below the closely followed benchmark of $100,000. That tumble shook investor confidence and led to steep cuts in price forecasts throughout the industry.
On an aggregated fund flow basis, ETP Institutionals have been receiving incoming flows over the last few weeks. Miners, whose break-evens have just doubled with the most recent halving, are choosing to hold more of their mined Bitcoin as opposed to selling on the open market – a sign often indicative of future price appreciation.
In the meantime, there were nearly all-time highs for long-term holders, a sign of accumulation rather than exodus activity. Analysts said the recent selloff had not provoked widespread panic selling and noted that the market appeared to be showing tendencies toward patient positioning instead.
But not everyone is convinced we’re headed for a rally. Contacted after October’s sell-off and a subsequent turn in market sentiment to risk-off, some of the big banks have updated their projections.
With market dynamics continuing to mature and new investment narratives emerging, Galaxy has adjusted its end-of-2025 price prediction from $180,000 to $120,000.
Cathie Wood’s Ark Invest also cut its long-term estimate, slashing around $300k off the prior target. Wood pointed to the increased use of stablecoins as digital stores of value in emerging market countries — a role Bitcoin once occupied.
Stablecoins, which replicate the U. S. dollar on a blockchain, have gained popularity in countries experiencing high inflation, currency instability, or banking crises. Wood argues that this has stifled grassroots demand for Bitcoin as a form of “digital cash” in war zones.
Market swings between fear and confidence
The gap between power-law-like models and their more cautious counterparts reflects a broader tension within the market. Yet long-term Bitcoin accumulation continues.
Major mining companies are consolidating and doubling down on their investments as global regulatory clarity has improved. And Bitcoin’s macro backdrop, including the sovereign debt clouds and long-term inflationary pressures, is also supportive of its bullish narrative as a hedge.
Livingston argues that similar dynamics have occurred in history before. For now, the market remains subdued, but the underlying tension is building — and the “spring” that never fully released in 2020 appears to be coiling once more.
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