Bitcoin News Today: Bitcoin's Energy Value Suggests 31% Undervaluation Current Price 31% Below Fair Value Per Energy Cost Model Energy Metric Indicates Potential Price Correction Long-Term Institutional Confidence Reflected in Rising Energy Inputs

Bitcoin is currently trading at a significant discount relative to its intrinsic value, according to a widely followed valuation model known as the Energy Value metric. This model, developed by analyst Charles Edwards, evaluates the fair price of Bitcoin by calculating the total energy cost required to produce each unit of the cryptocurrency. Based on this framework, Bitcoin’s fair value is estimated at approximately $145,000, meaning its current price is about 31% below this benchmark [1].

The Energy Value model posits that Bitcoin’s value is directly tied to the energy input required for mining. As the network’s mining difficulty increases and energy consumption rises, the cost of producing new Bitcoin units grows, which, in turn, is expected to increase its intrinsic value. According to the model, the growing energy investment by miners reflects a deep institutional and operational confidence in Bitcoin’s long-term utility and store of value [1].

One of the key implications of this valuation gap is the potential for a correction in the market price. Historically, large discrepancies between fair value and market price have often preceded significant price appreciation. The current undervaluation could indicate a buying opportunity for investors who are aligned with the long-term fundamentals of the asset. However, it is important to note that while the Energy Value metric offers a useful framework for assessing Bitcoin’s intrinsic value, it does not guarantee future price movements [1].

The model’s approach contrasts with traditional valuation methods that rely on speculative or sentiment-driven factors. Instead, it focuses on a tangible and measurable input—energy—offering a more objective basis for evaluating Bitcoin’s fair price. As energy costs rise and mining networks scale, this model suggests that the gap between market price and intrinsic value will likely narrow over time [1].

Investors and analysts are beginning to pay closer attention to such metrics as part of a broader shift toward value-based analysis in the cryptocurrency market. The Energy Value metric underscores the importance of viewing Bitcoin not just as a speculative asset, but as a product of real economic inputs. This perspective may help investors separate market noise from fundamental strength, especially during periods of volatility [1].

As the model continues to evolve, it is likely to influence more institutional and retail investors who are seeking a deeper understanding of Bitcoin’s value proposition. With a current 31% undervaluation, the signal from the Energy Value metric is clear: the market has not yet fully priced in the long-term strength of Bitcoin [1].

Source: [1] Bitcoin’s Energy Value Shows It’s 31% Undervalued (https://coinmarketcap.com/community/articles/6895e0d9c5bf30283f751e00/)