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

Bitcoin (BTC) has exited its “deep value” zone as on-chain data indicates a major shift in BTC price dynamics.

In a discussion on March 7, Charles Edwards, the creator of the quantitative Bitcoin and digital asset fund Capriole Investments, celebrated a “new era” for the market.

The current state of Bitcoin: fairly priced for the first time in two years

The recent surge in Bitcoin prices to all-time highs marks a significant shift from its previous price action. However, on-chain analysis reveals that the bulls have simply balanced the scales.

According to Edwards, at its current price of around $70,000, Bitcoin is fairly priced in terms of the energy used by miners to support the network.

The Bitcoin Energy Price metric by Capriole shows this phenomenon occurring for the first time since late 2020.

Edwards describes this metric as the “intrinsic value of Bitcoin based solely on the energy input into the network.” This calculation does not involve any complex formulas or power laws.

The energy price is just one of many market indicators that are pointing towards even higher Bitcoin prices in the future.

Despite the upcoming block subsidy halving, miners are currently selling significant amounts of BTC and still enjoying profitable margins.

According to Edwards, those hoping for a chance to buy Bitcoin at a bargain price have missed their opportunity. He believes that the era of undervalued Bitcoin has come to an end and a new, exciting chapter has begun.

If you’re looking to get into the crypto market, check out our list of top crypto websites. Learn how to acquire crypto and stay updated on the upcoming trends, like the highly anticipated Gala Crypto. Additionally, discover the differences between web 2.0 and web 3.0 and how to build a successful web 3.0 website. Don’t miss out on the fight for altcoins and the growing involvement of big players like Charles Schwab in the crypto world.

The Future of Crypto: Concerns Over BTC Price Correction Persist

Despite the ongoing excitement surrounding the crypto market, not everyone is feeling optimistic about what lies ahead.

Some experts believe that reaching all-time highs may lead to a prolonged correction, while others argue that institutional demand will continue to drive the market forward.

In light of these differing opinions, Venturefounder, a contributor to the on-chain analytics platform CryptoQuant, suggests that both Bitcoin and Ether (ETH) must make a more definitive breakthrough in order to sustain their current highs.

He also mentions the upcoming decision on whether or not to allow spot Ether exchange-traded funds (ETFs) in the United States as a potential factor in the market’s future performance.

According to Venturefounder, “March is likely to be a critical month in this cycle, especially after such a bullish February.”

Categorized in:

Tagged in: