Bitcoin Power Law

Is Bitcoin overvalued or undervalued right now?
price = a · (days since Bitcoin's 2009 launch)b

Across its entire history, Bitcoin's price has loosely followed one smooth long-term trend — a pattern called a power law. This page draws that trend and shades the space around it: green when Bitcoin is historically cheap (trading below the trend) and red when it's historically expensive (above it). The colored box just below gives you the one-line answer for today.

What am I looking at?
  • The orange line is Bitcoin's long-term trend — a rough "fair value" for each date.
  • Green zones (below the line) mean Bitcoin is cheaper than its trend; red zones (above) mean it's pricier than its trend.
  • The bands are measured in standard deviations (σ) — a way of asking "how unusual is this?". The inner band (±1σ) is the everyday range Bitcoin sits in about 68% of the time; the outer band (±2σ) is the wider range it stays inside about 95% of the time. Poking outside the outer band is rare and extreme.
  • The "σ from trend over time" strip below the main chart shows how cheap or expensive Bitcoin has been through every cycle — notice each peak reaching less extreme than the last.
How do I use the controls?
  • a and b are the two numbers that shape the trend line. Drag their sliders and every chart updates instantly — a good way to see how sensitive "fair value" is to the model.
  • Best fit lets the math choose the trend line that hugs real prices most closely.
  • The Display checkboxes turn the bands, the log-log view, and the σ history strip on and off.
  • Reset to defaults returns everything to the standard values.

A power-law fit is a heuristic that has held so far, not a guarantee — past structure need not continue. This is an educational tool, not financial advice.

a = b = R² (log) = σ = best-fit: a=, b=

Price (log) vs time

σ from trend over time — how cheap / expensive vs the model

Log-log — power law becomes a straight line

Price doubling timeline

Trend priceDate reachedYrs since prev

Year-end trend projection

YearTrend priceYoY growth