The recent fluctuation in the price of the top crypto token Bitcoin has been stirring diverse viewpoints from analysts. TXMC, a well-known crypto analyst on X, has recently condemned the Bitcoin predictions, saying the asset’s value does not follow any “Power Law” but the demand and supply. On the official social media account of the expert, they discussed what changes Bitcoin’s price.
I don't know how else to say this, and I'm not a mathematician who can throw out fancy terms, but #Bitcoin price is not governed by a "power law". It is set by bids and asks. It's more prediction voodoo from the same field of thought that gave us the debunked Stock 2 Flow model.
— 𝐓𝐗𝐌𝐂 (@TXMCtrades) July 1, 2024
Bitcoin Value is Set Up by Supply and Demand, not by ‘Magical Properties’
The analyst noted that there is no mathematical formula that governs the value of BTC. Hence, they added, the diverse predictions emerging daily cannot accurately present Bitcoin’s future status. While focusing on the demand and supply mechanism, the analyst also talked about the “magical properties” in which the content creators believe. According to the analyst, the crypto token has such properties on which they can anticipate the price.
The analyst negated this concept saying the respective parameters are usually detached from the open market. Here comes the idea of certainty and uncertainty while crypto assets are uncertain. Apart from that, the newly coming Bitcoin users also face many challenges in this respect. They reportedly need to get significant knowledge. However, without sufficient understanding, they follow the analyst, believing that they will surely get riches.
No Shortcut or Formula Exists to Ensure Success
While taking advantage of the less market knowledge of the newcomers, analysts convince the investors that just scientific formulas govern the Bitcoin market. Hence, the investors remain ignorant of risk factors market psychology, market forces, or human emotions at the back. The analyst asserted that all such concepts are misleading and false although they seem appealing. TXMC also claimed that such deceptive guidance works as a scam as no shortcut or formula exists that guarantees success.