Bitcoin briefly fell below its network value based on Metcalfe value modeling, signaling a potential late-stage market reset according to Timothy Peterson. The drop coincided with a 36% pullback pushing the price to $80,000, but has since rebounded above $90,000 as buyers stepped in and network conditions stabilized.

During the 2022 bear market, bitcoin traded below its Metcalfe value as activity weakened. Since early 2023, it remained above this benchmark, supported by rising participation. Trading below Metcalfe value historically leads to strong forward returns, with positive 12-month performance 96% of the time, averaging 132%.

Long-term holder (LTH) supply has increased by approximately 50,000 BTC over the past 10 days. LTHs are investors who have held their bitcoin for at least 155 days. As LTHs accumulate rather than distribute on a net basis, this reduction in sell-side pressure should benefit bitcoin’s price.

Read more at Yahoo Finance: Bitcoin Dipped Below ‘Fair Value’ for First Time in 2 Years, History Says 132% Gains Next 12 Months