Analyst Claims Bitcoin’s Value Plummeting as BTC Price Inches Towards $70K Threshold

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. Despite Bitcoin reaching all-time highs, on-chain analysis suggests that bulls have restored balance. Edwards demonstrates that at around $70,000, Bitcoin is now “fairly priced” based on the energy consumed by miners to participate in the network. Capriole’s Bitcoin Energy Price metric confirms this phenomenon for the first time since late 2020. Edwards describes the metric as the “intrinsic value of Bitcoin, priced solely by the amount of energy in the network.” Other market indicators also point to even higher BTC prices, with miners currently selling significant amounts of BTC and enjoying solid profit margins. Edwards believes that those waiting for discounted Bitcoin buying opportunities have missed the boat, as the “deep value” of Bitcoin is no longer available. However, concerns over a potential BTC price correction persist. Some believe that the recent all-time highs could trigger a prolonged correction, despite expectations of institutional demand driving the market further. Venturefounder, a contributor to on-chain analytics platform CryptoQuant, suggests that both Bitcoin and Ether (ETH) need to break their current highs definitively. He also references the upcoming decision on whether to allow spot Ether exchange-traded funds (ETFs) in the United States. If BTC and ETH fail to break new all-time highs in March, Venturefounder forecasts more downside in April/May, leading up to the halving and the potential approval of an ETH ETF. It’s important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment or trading decisions.