Bitcoin has dropped into a rare long-term valuation zone, while new commentary has raised a separate concern about the network’s future structure. On-chain analyst Darkfrost said BTC now trades below the 20th quantile of the Bitcoin Porkopolis Power Law Quantile Regression model. At the same time, Galaxy Research head Alex Thorn said Bitcoin mining has grown more centralized as artificial intelligence may move toward smaller local systems.
Darkfrost said Bitcoin now sits at a quantile of 18.5%, which places the asset in a significantly undervalued range. He said Bitcoin has spent only 18.5% of its trading history at that level of distribution or lower. That reading places the current move near what the model treats as extreme undervaluation over the long run.
The chart tracks Bitcoin’s price against long-term quantile bands, including Q95, Q90, Q75, Q50, Q25, Q10, and Q5, plus the power law trend line. Price sits below the central trend area and moves toward the lower bands. That position points to weakness against Bitcoin’s broader historical path.
The lower panel shows a quantile oscillator that maps valuation conditions across Bitcoin’s historical range. Earlier cycle peaks pushed the oscillator into the upper pink and red zones, where the model marked overvaluation. Now the oscillator has fallen into the green zone near 18.5%, a level tied to deeper market stress and corrective periods.
Can Bitcoin keep its decentralization promise if mining keeps concentrating while valuation models flash rare discounts?
Alex Thorn said Bitcoin mining started as a decentralized activity, with users mining coins on personal computers. Since then, he said, mining has shifted toward ASIC machines and industrial-scale farms. That change has made the sector far more centralized than it was in Bitcoin’s early peer-to-peer mining phase.
By contrast, Thorn said artificial intelligence may move in the opposite direction. He said AI began in centralized clusters, yet open-source models could narrow the gap. If local models keep getting smaller, cheaper, and more efficient, he said, AI may become more personal and run on-device.
The divergence goes to a core promise in crypto: decentralization. If Bitcoin mining keeps concentrating, Thorn said, concerns could grow around the network’s long-term resilience. In turn, the AI sector may move closer to the user rather than further into large centralized systems.
Read More: Bitcoin Indicator That Nailed Every Bottom: What’s It Signaling Today?
Edge AI computing runs models directly on local devices instead of sending all data to centralized cloud servers or large data centers. That setup supports real-time processing and lower latency. It also reduces dependence on distant computing hubs.
Grand View Research said the global AI edge market could grow from about $25 billion in 2025 to $119 billion by 2033. GVR linked that expansion to the rapid growth of connected devices. It also pointed to growing demand for real-time, low-latency data processing.
The broader AI discussion also comes with security concerns, as the source referenced researchers who found malicious AI agent routers that can steal crypto. Even so, GVR said adoption continues to rise across industries through AI-enabled automation. At the same time, the firm cited stronger demand for data privacy and localized intelligence at the network edge.
Bitcoin has entered a rare undervalued zone, with Darkfrost’s model placing BTC at an 18.5% historical quantile. At the same time, Alex Thorn warns that mining is becoming more concentrated, even as AI shifts toward local and edge-based systems. The key takeaway is that valuation and decentralization remain central to Bitcoin’s long-term outlook.