As the BTC price approaches $70,000, the analyst says that Bitcoin has ‘run out of deep value’
Bitcoin (BTC) has left the “deep value” zone as on-chain data shows a seismic shift in BTC price volatility.
In a March 7 X thread, Charles Edwards, founder of quantitative bitcoin and digital asset fund Capriole Investments, hailed a “new chapter” for the market.
Bitcoin has been “fairly priced” for the first time in two years.
Bitcoin is a sharp reversal from BTC's price action months ago, but on-chain analysis shows that the bulls have easily rebalanced the balance.
At around $70,000, Edwards points out, Bitcoin is “fairly priced” given the amount of energy used by miners to participate in the network.
The Capriole Bitcoin Energy price gauge shows the first event since late 2020 that is playing out.
Edwards describes the measure as “Bitcoin's intrinsic value derived from pure Joules of energy to the network alone.”
“There are no silly formulas, no power laws,” he explained.
“Energy alone will demonstrate the true value of Bitcoin from its inception. Currently at $70k, it has given Bitcoin a fair value for the first time in 2 years.
Energy prices are just one example of the broader market indicators that are now pointing to higher BTC prices.
Despite the upcoming block subsidy halving, even miners currently selling large amounts of BTC are enjoying a return to solid profit margins.
“Bitcoin has come out of production costs in recent months, with regular fee increases, Bitcoin Mining is once again highly profitable,” Edwards wrote.
“As you can see, these crashes often lead to high prices. But the era of Bitcoin's value is over.
On that note, Edwards believes that people who are waiting for opportunities to buy Bitcoin are missing out.
“Bitcoin has lost deep value. That ship has sailed. You had 2 years to pick up a low-value bitcoin. Instead, an exciting new chapter has begun,” he concluded.
Welcome to the era of Bitcoin Momentum.
Concerns about BTC price fixing remain.
As Cointelegraph continues to report, not everyone is feeling optimistic about what the future holds.
RELATED: Bitcoin Accumulation Level Ends As ETFs Fire New $100K BTC Price Target
Some consider an all-time high as a trough, which creates an extended correction, contradicting the idea that institutional interest will further dominate the market.
Updating his view on how events may play out over the next few months, Venturefounder of on-chain analytics platform CryptoQuant suggests that both Bitcoin and the biggest altcoin, Ether (ETH), should make a real breakout today. High.
SpotEther mentions the upcoming decision to allow exchange-traded funds (ETFs) in the United States.
“If BTC and $ETH fail to make a proper new ATH breakout in March, I think we'll see further declines in April/May, halving and ETH ETF approval,” he predicted.
“March is probably the most important month of this cycle after February,” added the venture founder.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
