Happycoin.club - Economist Timothy Peterson, who works as an investment advisor at Cane Island Alternative Advisors, warned of a high risk of a 20% drop in Bitcoin's value.

Here is the ratio of Bitcoin value to Metcalfe Value. Whenever this figure exceeded 100%, a bearish trend began, as a result of which Bitcoin fell in price by at least 20%.

This week it reached 102%. There is a 66% chance that the price of Bitcoin will fall by 20% over the next six months,” Timothy wrote.

Bitcoin's Metcalfe value-to-value ratio is an indicator that is calculated by comparing the price of a coin to the square of a number that represents the number of users of the cryptocurrency's blockchain.

The logic is that above 100%, Bitcoin is considered overvalued due to not enough people finding use for the decentralized network. Because of this, the value of the asset inevitably falls.

If Peterson's forecast turns out to be correct, the Bitcoin rate will drop to $54,665 by the end of November. In this case, the price of the coin will fall below the bottom recorded on May 1 at $56,612 and reach its lowest level since February 2024.