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Breaking News: Treasury Stablecoin Proposal Draws Major Warning From Hyperliquid Policy Center–Here’s Why
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Breaking News: Treasury Stablecoin Proposal Draws Major Warning From Hyperliquid Policy Center–Here’s Why

Bitcoin Reaches Deep Undervaluation Zone – Time To Get In?

Semilore Faleti
Semilore Faleti
Last Updated: June 7, 2026 12:07 pm
2 mins read
Bitcoin

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Bitcoin’s recent correction continues to shake market confidence, with the premier cryptocurrency enduring an intense selling pressure over the past several weeks. Since May 15, Bitcoin has steadily declined by 26.8%, with price now trading around the cycle bottom at $60,000. Despite the ongoing market weakness, it appears the latest decline may have pushed Bitcoin into one of its most attractive accumulation zones in years.

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Power Law Model Produces Rare Bitcoin Undervaluation

In a recent post on X, popular market analyst Darkfost highlighted a significant development in Bitcoin’s long-term valuation metrics.

According to the analyst, the digital asset has now fallen into an extreme undervaluation zone based on the widely followed Bitcoin Power Law model. For context, the Power Law model is a long-term valuation framework that tracks Bitcoin’s growth trajectory. Rather than focusing on short-term price movements, the model attempts to measure whether Bitcoin is trading above or below its historical trend line.

 

📉 Bitcoin has just fallen to an extreme regression level based on the Power Law model.

By dropping below the 4% quantile, Bitcoin has entered a zone of extreme undervaluation.

💥 To put this into perspective, Bitcoin has spent less than 4% of its entire history trading at… pic.twitter.com/Mukd2wH0pD

— Darkfost (@Darkfost_Coc) June 6, 2026

 

Notably, Darkfost reports that Bitcoin has now dropped below the model’s 4% quantile, i.e., the asset is trading at a valuation lower than approximately 96% of its historical observations relative to its long-term growth path. Historically, these periods below the 4% quantile level have been associated with deep market pessimism and heightened investor uncertainty.

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3 days ago

Historical Trends Suggest Accumulation Opportunity

According to Darkfost, periods of extreme undervaluation represent phases when investors should gradually increase exposure rather than reduce it. This observation is rooted in historical market behavior, where Bitcoin tends to rebound after reaching these undervaluation levels, as seen in 2016, 2020, and 2022.

However, it’s worth noting that the Power Law signal should not be interpreted as an indication of an immediate market reversal. Instead, the Power Law model is designed to assess long-term valuation conditions rather than short-term price direction. As a result, investors are encouraged to view it through a broader investment horizon and deploy their positions carefully.

At the time of writing, Bitcoin is valued at $61,592, following a slight 1.95% gain in the last 24 hours. Meanwhile, the daily trading volume is down 56.14% to $31.21 billion. According to Coincodex analysts, the Fear & Greed Index stands at 12, indicating market carnage with extreme fear and a dominant bearish sentiment.

However, Coincodex analysts predict the market should rebound soon, with a projection of $69,489 next month.

Bitcoin
BTC trading at $62,403 on the daily chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Shutterstock, chart from Tradingview
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Semilore Faleti
Semilore Faleti

Semilore Faleti

Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency.

Read more

Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems.

In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others.

In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies.

Semilore also curated pieces for veteran crypto users ensuring they were up to date with the latest blockchains, decentralized applications and network updates. This foundation in educational writing has continued to inform his work, ensuring that his current work remains accessible, accurate and informative.

Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information.

Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets.

Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends.

Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination.

He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society.

In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come.

His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry.

Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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