{"id":418044,"date":"2020-03-13T16:00:44","date_gmt":"2020-03-13T16:00:44","guid":{"rendered":"https:\/\/uniquehot.com\/?p=418044"},"modified":"2020-03-13T15:20:28","modified_gmt":"2020-03-13T15:20:28","slug":"recent-bitcoin-price-action-isnt-radical-according-to-serious-valuation-models","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/recent-bitcoin-price-action-isnt-radical-according-to-serious-valuation-models\/","title":{"rendered":"Recent Bitcoin Price Action Isn\u2019t Radical According to Serious Valuation Models"},"content":{"rendered":"

Yesterday, the cryptocurrency market was a complete bloodbath, bringing Bitcoin<\/a> to under $4,000 briefly before a rebound occurred.<\/span><\/p>\n

Despite the carnage, according to the asset\u2019s most serious valuation models, the price action wasn\u2019t anything radical and the first-ever cryptocurrency is still tracking along healthy as can be.<\/span><\/p>\n

Bitcoin Bloodbath Wasn’t Enough to Break Serious Valuation Models<\/h2>\n
The leading cryptocurrency by market cap saw one of the worst selloffs in the history of the asset yesterday, as fears over the rapidly spreading coronavirus reach critical status<\/a>.<\/span><\/p>\n
The economy is feeling the sting, and even a $1.5 trillion dollar injection by the Fed hasn\u2019t really resulted in much relief.<\/span><\/p>\n
Related Reading | Don\u2019t Panic: This Previously Impervious Support Could Save Bitcoin<\/a><\/strong><\/em><\/p>\n
As bad as it has been in the stock markets, with the Dow seeing its worst single-day loss since 1987<\/a>, Bitcoin was a complete and utter bloodbath.<\/span><\/p>\n
After support at $7,500 broke down, the crypto asset fell like a brick and less than 24 hours later was under $4,000. All this when just a few weeks prior, Bitcoin was trading above $10,000.<\/span><\/p>\n
The panic-driven drop was a cataclysmic event<\/a> that will scar crypto investors for some time, but even despite both bears and bulls being in complete disbelief over what transpired, the price action was nothing radical, according to more serious valuations models.<\/span><\/p>\n
Because Bitcoin<\/a> is unlike any other asset before it and isn\u2019t yet well understood, only a few more serious and professional valuations models exist.<\/span><\/p>\n
These models include the highly cited Stock-to-Flow model<\/a> and the Power Law Growth Corridor<\/a>.<\/span><\/p>\n
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Just stepping in to note that the Bitcoin network is still fully functional, and the price is doing nothing radical viewed in light of some of the more serious valuation models. pic.twitter.com\/0q8RymMIA7<\/a><\/p>\n
— gravitywave (@gravitywave2) March 13, 2020<\/a><\/p><\/blockquote>\n