Bitcoin Plunges to Undervaluation Zone as Experts Weigh Bottom Formation

Bitcoin's price action over the past week has been intense, with a decline of nearly 20% from its weekly open to low. This is the largest single-week percentage drop since the FTX collapse in 2022. However, unlike that period, Bitcoin had already lost a significant portion of its value prior to this latest crash.

At the time of writing, Bitcoin is trading at around $62,150, which is approximately 50.7% below its October 2025 all-time high. This has led some analysts to suggest that the current decline may be part of a final-washout zone similar to what followed FTX's crash.

Crypto analyst Darkfost noted that Bitcoin has fallen below the 4% quantile on the Power Law model, which is typically associated with undervaluation. Every instance in which this quantile oscillator reached this level preceded notable multi-year recoveries. However, momentum and forced selling could keep prices low for longer.