Bitcoin ‘deep value is over’ says analyst as BTC price nears $70K line

Bitcoin (BTC) has left its “deep value” zone as on-chain data points to a seismic shift in BTC price dynamics.

In an X thread on March 7, Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, hailed a “new chapter” for the market.

Bitcoin “fairly priced” for first time in two years

Bitcoin at all-time highs is a serious transformation from BTC price action just months ago, but on-chain analysis shows that bulls have simply redressed the balance.

At around $70,000, Edwards shows, Bitcoin is “fairly priced” in terms of the amount of energy used by miners to participate in the network.

Capriole’s Bitcoin Energy Price metric shows the phenomenon playing out for the first time since late 2020.

Edwards describes the metric as “Bitcoin’s intrinsic value priced from the pure Joules of energy into the network only.”

“No wacky formulas, no power laws,” he explained.

“Energy alone maps the fair value of Bitcoin from inception. Currently at $70K, making Bitcoin fairly valued for the first time in 2 yrs.”Bitcoin Energy Price. Source: Charles Edwards on X

Energy price is just one example of an extensive list of market gauges that are now pointing toward even higher BTC prices.

Even miners, currently selling significant amounts of BTC despite the upcoming block subsidy halving, are enjoying a return to solid profit margins.

“Bitcoin broke out of the cost of production in recent months, along with the Ordinals fee boost, Bitcoin Mining is once again highly profitable,” Edwards wrote.

“As you can see, these breakouts often lead to repricing a lot higher. But the era of value Bitcoin is over.”Bitcoin miner sell pressure. Source: Charles Edwards on X

On that note, Edwards believes that those waiting for bargain Bitcoin buying opportunities have missed their opportunity.

“Bitcoin deep value is gone. That ship has sailed. You had 2 years to pick up undervalued Bitcoin. Instead an exciting new chapter has begun,” he concluded.

“Welcome to the Bitcoin Momentum era.”

Concerns over BTC price correction linger

As Cointelegraph continues to report, not everyone…

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