Bitcoin’s correction is still doing damage to market confidence. NewsBTC reports that since May 15, BTC has fallen 26.8% and is trading near the cycle bottom around $60,000, with selling pressure continuing over the past several weeks.
Power Law flags “extreme undervaluation”
The key claim in this story comes from market analyst Darkfost. In an X post dated June 6, 2026, Darkfost says Bitcoin has fallen into an extreme undervaluation zone based on the Bitcoin Power Law model.
NewsBTC explains how the Power Law model works. It is a long-term valuation framework that checks whether Bitcoin is trading above or below its historical growth trajectory. Instead of tracking day-to-day price action, the model compares current valuation to the model’s historical trend line.
Darkfost’s trigger is specific. NewsBTC says BTC dropped below the model’s 4% quantile. That is presented as a regression level where Bitcoin is trading lower than roughly 96% of its historical observations relative to the long-term growth path.
In the same post, Darkfost adds that this sort of placement historically coincides with deep market pessimism and elevated investor uncertainty.
What history says, and what it does not
NewsBTC then links the quantile signal to past behavior. The article states that periods below the 4% quantile have historically been followed by rebounds, citing 2016, 2020, and 2022 as examples.
But the article also draws a boundary around how to read the model. It cautions that the Power Law signal should not be treated as an immediate reversal indicator. NewsBTC characterizes the model as a long-term valuation check, not a short-term direction tool. The practical consequence for readers is simple. A “cheap vs history” reading can coexist with more downside risk in the near term.
Market mood remains bleak
At the time of writing, NewsBTC puts BTC at $61,592 after a slight 1.95% gain in the last 24 hours.
Trading activity looks weaker. NewsBTC says daily trading volume dropped 56.14% to $31.21 billion.
Risk appetite also appears impaired. NewsBTC cites Coincodex analysts on a Fear & Greed Index reading of 12, described as extreme fear with bearish sentiment.
Coincodex also offers a forward-looking number in the same source set. NewsBTC reports a predicted rebound level of $69,489 next month. This is a projection, not a guarantee, and the Power Law caveat still applies.
Snapshot of the claims in this report
| Metric | Value cited | Source in article |
|---|---|---|
| BTC move since May 15 | -26.8% | NewsBTC |
| BTC price at time of writing | ~$61,592 | NewsBTC |
| Daily change | +1.95% | NewsBTC |
| Daily trading volume | $31.21B | NewsBTC |
| Fear & Greed Index | 12 (extreme fear) | Coincodex via NewsBTC |
| Power Law quantile threshold | Below 4% quantile | Darkfost via NewsBTC |
| Next-month projection | $69,489 | Coincodex via NewsBTC |
The desk’s read: valuation cheapness is not a schedule
If you strip away the accumulation-language, the real point is this. NewsBTC presents a scenario where Bitcoin’s long-term valuation relative to its modeled growth path has moved into a historically rare tail of the distribution.
That can matter. But it also does not say when the market will change its mind. NewsBTC’s own framing stresses the Power Law model measures valuation conditions, not a price-timing mechanism.
If Bitcoin stays under pressure, the “extreme undervaluation” label can keep getting tested. If it holds, the historical pattern Darkfost points to suggests the market often eventually does. Either way, the risk is real, and the signal is about conditions, not certainty.