PANews reported on December 2nd, citing Cointelegraph, that Bitcoin's price is currently down 31.4% from its all-time high of $126,000 reached on October 6th. This pullback has caused BTC's price to fall below its network value (Metcalfe's Law) for the first time in two years. Economist Timothy Peterson stated that historically, this often foreshadows a Bitcoin recovery. Metcalfe's Law states that BTC's price is positively correlated with the growth of active addresses and transaction volume (i.e., network value); the more wallets and transactions, the higher the fair price. This divergence between price and network value indicates that Bitcoin is undervalued relative to its expanding network, a situation that typically occurs after excessive speculation. Peterson posted on the X platform on Tuesday that while this doesn't mean prices have bottomed out, it does indicate that most leverage has been cleared and the "bubble" has burst. He added that the Metcalfe value ratio has consistently been an effective indicator for predicting future price performance, with data showing that on any trading day, when prices are below their Metcalfe value, the probability of a positive return a year later is as high as 96%.PANews reported on December 2nd, citing Cointelegraph, that Bitcoin's price is currently down 31.4% from its all-time high of $126,000 reached on October 6th. This pullback has caused BTC's price to fall below its network value (Metcalfe's Law) for the first time in two years. Economist Timothy Peterson stated that historically, this often foreshadows a Bitcoin recovery. Metcalfe's Law states that BTC's price is positively correlated with the growth of active addresses and transaction volume (i.e., network value); the more wallets and transactions, the higher the fair price. This divergence between price and network value indicates that Bitcoin is undervalued relative to its expanding network, a situation that typically occurs after excessive speculation. Peterson posted on the X platform on Tuesday that while this doesn't mean prices have bottomed out, it does indicate that most leverage has been cleared and the "bubble" has burst. He added that the Metcalfe value ratio has consistently been an effective indicator for predicting future price performance, with data showing that on any trading day, when prices are below their Metcalfe value, the probability of a positive return a year later is as high as 96%.