Bitcoin valuation indicator prediction: The probability of Bitcoin price recovery in 2026 is 96%.

PANews December 2 news, according to Cointelegraph, the price of Bitcoin has currently fallen 31.4% from the historical high of $126,000 set on October 6. This pullback has caused the BTC price to fall below its network value (Metcalfe's value) for the first time in two years. Economist Timothy Peterson states that historically, this often indicates a recovery for Bitcoin. Metcalfe's Law points out that BTC price is positively correlated with the rise in active addresses and volume (i.e., network value); the more wallets and transactions there are, the higher the fair price. This divergence between price and network value indicates that Bitcoin is undervalued relative to its continuously expanding network, a situation that typically occurs after excessive speculation. Peterson posted on X platform on Tuesday, stating that although it does not mean the price has bottomed out, it indicates that most of the leverage has been cleared and the “bubble” has burst. He also added that the Metcalfe value ratio has always been an effective indicator for predicting future price performance, with data showing that on any trading day, when the price is below the Metcalfe value, the probability of achieving positive returns after one year is as high as 96%.