Bitcoin News Today: Bitcoin Trades 31% Below Energy-Based Fair Value Amid Record Hash Rate Growth

Bitcoin is currently trading at a 31% discount to its estimated energy-based fair value, a metric that calculates the minimum price the cryptocurrency should trade at given the energy inputs required to secure the network [1]. This metric, known as Bitcoin’s Energy Value, is derived from a formula that accounts for energy consumption, supply growth, and the fiat value of energy, as developed by Capriole in 2019. The current energy-based fair value is estimated at approximately $167,800, suggesting that the price of Bitcoin could potentially surge by nearly 45% to align with its intrinsic worth [2].

This assessment is further supported by recent data from on-chain analytics firm Glassnode, which reports that Bitcoin’s hashrate has reached a record high of 1.031 zettahashes per second as of August 4, 2025 [3]. The hashrate, representing the total computing power dedicated to the network, serves as a proxy for miner activity and energy input. High hashrates imply robust security and sustained interest from miners, both of which are essential to maintaining the network's long-term viability.

According to analyst Edwards, the rising hashrate and Energy Value metric indicate a growing imbalance between Bitcoin’s current price and its underlying fundamentals. "Hash Rates are flying and Bitcoin Energy Value just hit $145K," he noted, adding that the current price of around $116,000 is deeper in discount than when Bitcoin was at $10,000 in September 2020 [4]. This comparison suggests that the potential for a significant price correction or surge is greater than at previous low points in Bitcoin’s cycle.

The Energy Value model operates on the principle that a balance between supply and demand is achieved through consistent energy input. As market prices rise, it incentivizes miners to invest in more efficient hardware and expand their operations, which in turn increases energy consumption and further justifies a higher valuation [5]. However, the model also cautions that speculative price increases—those not accompanied by proportional energy input—have historically led to price corrections back to the Energy Value level.

In recent weeks, Bitcoin has traded within a range of $114,000 to $118,000, reflecting the ongoing volatility typical of the asset class despite a broader bull market. Canaan, a major player in the mining industry, reported mining 89 bitcoins in July 2025, even as it experienced a decline in both deployed and operating hashrates [6]. These figures highlight the dynamic and often unpredictable nature of the mining sector, where firms must continuously adapt to remain competitive.

While the Energy Value model offers a novel and compelling framework for evaluating Bitcoin’s intrinsic worth, it is not without limitations. It does not account for external factors such as regulatory changes, macroeconomic trends, or shifts in investor sentiment. As such, any projections derived from this model should be viewed as speculative and used in conjunction with broader market analysis [7].

The Bitcoin network continues to demonstrate resilience and growth, with miner activity and energy consumption reinforcing the asset’s long-term fundamentals. As the market moves forward, the interplay between price, hashrate, and energy input will remain a key focus for investors and analysts alike.

Source:

[1] Cointelegraph

(https://cointelegraph.com/tags/bitcoin)

[2] Cointelegraph

[3] Cointelegraph

[4] Cointelegraph

[5] Cointelegraph

[6] Mitrade

(https://www.mitrade.com/au/insights/news/live-news/article-8-1015007-20250806)

[7] Cointelegraph