Swiss researchers have identified that the slowing of Bitcoin’s growth in terms of market capitalization could indicate that it has a long way to drop still before the end of the year. By using Metcalfe’s law, which states a network is proportional to the square of the number of users of the system.
According to the researchers, Bitcoin’s market capitalization could go down to as low as $77 bln by the end of the year. Currently, Bitcoin’s capitalization is at around $118 bln, so, if this was to come to fruition, it would indicate a $41 bln decline or 35 percent.
"Looking forward, our analysis identifies a substantial but not unprecedented overvaluation in Bitcoin price, suggesting many months of volatile sideways Bitcoin prices ahead," the Swiss researchers said.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.