Bitcoin’s fair value: BTC may never fall below $60K, says economist

1 week ago 8

Other key indicators suggest that Bitcoin’s long-term floor price is above $40,000.

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BTC may never fall below $60K, says economist

Questions have arisen around Bitcoin’s fair value after a popular economist predicted that the world’s first cryptocurrency may never fall below $60,000.

The Bitcoin (BTC) price could settle above the $60,000 psychological mark, according to economist and rader Alex Krüger, who wrote in a Nov. 5 X post:

“50% probability of Bitcoin never trading below 60K again.”

The economist’s prediction came on US election day, which has placed additional attention on Bitcoin and cryptocurrencies. On Monday, Nov. 4, Bitcoin bottomed out above $66,815 before recovering above $68,750 as of 1:37 pm UTC on Nov. 5.

Some analysts expect the post-election volatility to lead to a Bitcoin breakout to new all-time highs. Notably, Bitfinex analysts predict a Bitcoin rally to $80,000 before the end of 2024, driven by the options market structure and the prospect of a Republican presidential victory.

Bitcoin’s “floor price” crossed $40k: Adam Back

Some metrics suggest that Bitcoin’s floor price may be above $40,000, including the 200-week moving average — a popular technical indicator used to determine long-term market trends, by removing the daily volatility.

This key indicator crossed the $40,000 mark on Oct. 18, according to Adam Back, the co-founder and CEO of Blockstream and the inventor of Hashcash.

Back wrote in an Oct. 20 X post:

“The Bitcoin 200 week moving average, effectively the bitcoin floor "up only" price crossed $40k. You can view it as roughly the bitcoin floor price without the volatility, at least historically.”

Others argue that Bitcoin’s cumulative value coin days destroyed (CVDD) is a better metric to determine Bitcoin’s floor price, or “absolute market bottom.”