Kosta Ouzas argues that Bitcoin's big price swings follow a power-law pattern, and recent crashes were overreactions. When Bitcoin deviates from this pattern, it tends to correct back into line, though if it stays on track there's no need to bounce back.
It's kind of an assumption that makes sense. I think a lot of the drawdowns that we saw were overreaction. You know, after all, the reason why we had a power law in the first place, right, Even if we added these big bubbles is because we went up as much as we went down. And so, for some reason, right, Bitcoin likes to follow the power law. So whenever it abandoned it, it needed to compensate by going down. Now, if we follow the power law, maybe there is no reason to compensate.
