Bitcoin Undervalued by 40% According to Energy Value Metric
Bitcoin's Potential Undervaluation Revealed
Bitcoin, the leading cryptocurrency, may be trading at a significant discount to its intrinsic value, according to Charles Edwards, founder of Capriole Investments. The Bitcoin Energy Value, a metric developed by Edwards, suggests that Bitcoin's intrinsic value is $130,000, compared to its current market price of over $94,000. This indicates a 40% undervaluation.
Recent Price Surge and Technical Breakthroughs
Bitcoin has recently surged above $94,000, breaking key resistance levels. The cryptocurrency has surpassed its daily SMA 50 and SMA 200, which had constrained its price since early February. This breakout comes after weeks of subdued activity and is part of a broader market rally that has seen both equities and cryptocurrencies gain traction.
Strong Momentum and ETF Inflows
Bitcoin's recent rally has been accompanied by six consecutive days of gains, with a notable surge from $87,077 to $93,952 on April 25. At press time, Bitcoin was trading at $94,266, up 1.88% in the last 24 hours and 11% weekly. The U.S. spot Bitcoin ETFs saw a significant inflow of $1.54 billion in a single day, signaling a potential recovery in Bitcoin demand.
Key Takeaways
- Bitcoin's price may be undervalued by 40% based on energy value metrics.
- Recent price gains have broken key technical resistance levels.
- Strong inflows into Bitcoin ETFs suggest growing investor interest.
This analysis highlights Bitcoin's potential for further growth as market sentiment improves and technical indicators turn bullish.
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