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Famous physics professor Giovanni Santostasi has drawn attention to the “power law” model for predicting the price of Bitcoin (BTC), making ambitious price forecasts for the leading cryptocurrency. The power law model, which is based on a mathematical relationship where one value is proportional to a constant power of another value, is gaining significant interest for providing more understandable and predictable information about Bitcoin‘s long-term price movements.
Anticipates a Peak of $210,000 by 2026
Initially shared in 2018 on Reddit’s r/Bitcoin subreddit, Santostasi’s power law model recently resurfaced in January through a video published by finance YouTuber Andrei Jeikh on his channel. According to Santostasi, the model currently indicates that Bitcoin could potentially peak at $210,000 in January 2026 and could subsequently drop to around $60,000, overall suggesting a positive outlook. The renowned physicist also added that the model shows BTC could potentially reach $10 million by the year 2045.
In a recent discussion with mathematician and Bitcoin investor Fred Krueger, Santostasi emphasized that the power law model provides a clearer understanding of long-term price trends compared to the “messy” short-term charts often seen in mainstream media. The power law model reveals patterns on logarithmic scales that would not be visible on linear graphs.
Unlike the criticized exponential stock-to-flow model, Santostasi’s power law model is logarithmic and allows for significant price fluctuations over time to be taken into account. This flexibility acknowledges the volatility observed in Bitcoin’s price between 2020 and 2023, offering a stronger framework for analysis.
Predicts $1 Million by 2033
In a subsequent article, Krueger detailed the mathematical modeling of the power law applied to Bitcoin, predicting a price of $100,000 within the next two years. Krueger also suggested that under the power law model, Bitcoin’s market value could exceed the seven-figure mark, reaching $1 million by the year 2033.
While Santostasi and Krueger defend the consistency of the power law model, critics warn that any mathematical model, including this one, is prone to errors and may not fully account for unpredictable events that could significantly affect the price of the leading cryptocurrency.
