TLDR
Based on Metcalfe’s Law analysis, Bitcoin projected to reach $1.5 million by 2035, representing a 15x increase
Recent price action shows Bitcoin pulling back to $92,805, with $524 million in liquidations over 24 hours
Analyst Keith Alan suggests support levels at $91,500 and $86,500 with over $300M in bid liquidity
Competing analysis from Ali Martinez points to $275,000 target based on cup and handle pattern
Timothy Peterson, who accurately predicted September bottom, bases projection on network effect growth
The cryptocurrency market is witnessing a temporary pullback, with Bitcoin trading in the low $90,000 range. However, new analysis based on network growth metrics suggests a much higher valuation in the coming years.
Timothy Peterson, a respected cryptocurrency analyst, has released a detailed projection indicating Bitcoin could reach $1.5 million by 2035. This forecast is based on Metcalfe’s Law, which measures the relationship between network users and overall value.
The analysis comes at a time when Bitcoin has experienced increased market volatility. Current trading data shows Bitcoin at $92,805, representing a 3.3% decline over the past 24 hours. This recent price movement has triggered over $524 million in market-wide liquidations.
Peterson’s track record lends weight to his prediction. He correctly identified Bitcoin’s local bottom in September of last year, and his research paper “Metcalfe’s Law as a Model for Bitcoin’s Value” has gained attention in academic circles.
The year is 2035. Bitcoin is at – and you can hold me to this – $1.5 million. And somewhere someone is asking “Is now a good time to buy Bitcoin?” pic.twitter.com/BmuQnqlOSt
— Timothy Peterson (@nsquaredvalue) January 8, 2025
The core premise of Peterson’s analysis rests on Metcalfe’s Law, which states that a network’s value grows proportionally to the square of its user count. In practical terms, this means Bitcoin’s value increases exponentially as more people join the network.
Looking at current market conditions, analyst Keith Alan provides a more immediate perspective. He identifies key support levels at $91,500 and $86,500, noting substantial bid liquidity of over $300 million within this range.
The market structure shows clear signs of selling pressure, with Alan noting that buyers appear to be waiting for lower price levels before making major purchases. This dynamic has contributed to the recent price decline from Bitcoin’s all-time high of $108,135.
Technical analysis of the current situation reveals that a drop to $86,500 would represent a 20% correction from the recent peak. Some analysts suggest this could be a healthy retrace in the broader upward trend.
Market data indicates that Bitcoin liquidations alone account for $136 million of the total market-wide position closures in the past 24 hours. This suggests a period of position unwinding and market repositioning.
Despite the short-term volatility, Peterson’s research indicates that traditional currency valuation models fail to capture Bitcoin’s unique characteristics. His work emphasizes the importance of network effects in determining Bitcoin’s long-term value.
Adding another perspective to the analysis, crypto analyst Ali Martinez points to a cup and handle pattern formation on the weekly chart. This technical setup suggests a potential move toward $275,000 in the intermediate term.
The current market structure shows clear support and resistance levels. Trading volume indicates active participation at key price points, with institutional interest remaining steady despite the recent pullback.
Looking at on-chain metrics, network adoption continues to show steady growth. This aligns with Peterson’s thesis about the relationship between user adoption and price appreciation.
The data suggests that while short-term price movements may create volatility, the underlying network metrics continue to strengthen. This includes factors such as active addresses, transaction volume, and mining hash rate.
The most recent market data shows Bitcoin trading at $92,805, with immediate support established at the $91,500 level. Trading volume remains elevated, indicating active market participation during this price discovery phase.
