Bitcoin’s recent price fluctuations have sparked a variety of opinions among analysts. One well-known crypto analyst, TXMC, has recently criticized Bitcoin predictions, stating that the value of the asset is not determined by a “Power Law,” but rather by supply and demand. Taking to their official social media account, the expert discussed what truly influences Bitcoin’s price.
In a straightforward manner, TXMC expressed their thoughts, emphasizing that Bitcoin’s price is not governed by a “power law.” Instead, it is determined by bids and asks in the market. They also dismissed the debunked Stock 2 Flow model as another example of prediction voodoo.
The analyst argued that the value of Bitcoin cannot be mathematically calculated, making the daily predictions unreliable in accurately predicting its future. While acknowledging the importance of supply and demand, the analyst criticized the belief in the “magical properties” associated with Bitcoin that some content creators hold. They explained that these properties are often detached from the real market.
The concept of certainty and uncertainty also came into play, with the analyst highlighting the unpredictable nature of crypto assets. Furthermore, they mentioned the challenges faced by new Bitcoin users, who often lack sufficient knowledge and blindly follow the analyst’s predictions in the hope of achieving wealth.
Exploiting the limited market knowledge of newcomers, analysts often convince investors that the Bitcoin market is governed by scientific formulas, leaving them unaware of risk factors, market psychology, market forces, and human emotions. The analyst asserted that such concepts are misleading, despite their initial appeal. TXMC went further to claim that this deceptive guidance acts as a scam, as there are no shortcuts or formulas that guarantee success.