Bitcoin (BTC) has exited its “deep value” range as on-chain data indicates a significant shift in BTC price dynamics. Charles Edwards, the founder of quantitative Bitcoin and digital asset fund Capriole Investments, sees this as a “new chapter” for the market. While Bitcoin reaching all-time highs is a major change from its price action just a few months ago, on-chain analysis shows that bulls have restored the balance. Edwards demonstrates that at around $70,000, Bitcoin is now “fairly priced” based on the energy used by miners to participate in the network. Capriole’s Bitcoin Energy Price metric reveals this phenomenon occurring for the first time since late 2020. Edwards describes the metric as the “intrinsic value of Bitcoin priced solely on the Joules of energy into the network, without any complex formulas or power laws.” Energy price is just one example of various market indicators that are now pointing to even higher BTC prices. Even miners, who are currently selling significant amounts of BTC despite the upcoming block subsidy halving, are experiencing solid profit margins once again. Edwards believes that those hoping to buy Bitcoin at a discount have missed their chance, as the “deep value” period is over. However, not everyone shares this optimism about Bitcoin’s immediate future. Some anticipate a prolonged correction following the all-time highs, while others believe institutional demand will continue to support the market. Venturefounder, a contributor to the on-chain analytics platform CryptoQuant, suggests that both Bitcoin and Ether (ETH) need to surpass their current highs to avoid further downside in April/May, especially in light of the upcoming decision on whether to allow spot Ether exchange-traded funds (ETFs) in the United States. He believes that March is a crucial month in this cycle, following a bullish February. It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.
Analyst claims Bitcoin's worth is depleted as BTC price approaches the $70K threshold.