Only once before has BTC been such a good value against hash rate, and that was long before even the all-time high of 2017.

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Price metrics are back to pre-2017 bull market lows.

As its creator, Charles Edwards, CEO of asset manager Capriole, pointed out, Bitcoin’s measuring stick is now at its second lowest level in history.

Yardstick records second lowest reading in history
As on-chain metrics converge to set a classic macro bottom for BTC/USD, a new candidate suggests that Bitcoin is even more oversold than the average hodler thinks.

Bitcoin Yardstick measures the relationship between Bitcoin’s market capitalization and hash rate, two fundamental metrics that, when compared to each other, provide key prices.

As Edwards explains, the lower the value, the “cheaper” Bitcoin is: more hashrate is applied to secure low-priced coins.

While he cautions that it’s “not investment advice,” this does have implications for potential buyers: much of the unrealized value lies in the amount of work required to secure the supply of bitcoin during price suppression.

Currently, the Bitcoin network hash rate is near all-time highs, while the price is down roughly 75% from its last all-time high seen in November 2021.

“Today we see the second lowest Bitcoin Yardstick reading in all of Bitcoin history,” Edwards commented:

“This means that, relatively speaking, Bitcoin is extraordinarily cheap given the amount of energy used in the world’s most powerful computer network.”

The chart directly shows the volatility of the Bitcoin Yardstick. Source: Charles Edwards/Twitter
Bitcoin hash rate continues to rise
The Yardstick fuels the Proof-of-Work (PoW) concept, the Bitcoin network’s mining algorithm and its ability to store and increase value over time based on productive activities. The Bitcoin Standard, the seminal book by scholar Saifedean Ammous, focuses heavily on the idea.

Related: Bitcoin ‘Double Bottom’ Excites Bulls as NVT Signal Predicts a Big Move

Meanwhile, the opposite of the current scenario, where price is high compared to labor, happened during the bull market years of 2013 and 2017.

In 2021, several spikes accompanied Bitcoin’s double spike in April and November, respectively, but none reached the scale of previous spikes.

The chart directly shows the volatility of Bitcoin and the Yardstick. Source: Glassnode
As Cointelegraph reported, Bitcoin miners are under significant stress despite the skyrocketing hash rate as profit margins shrink.

The summer has already seen a period of “surrender” from miners, with Edwards providing proof of recovery in August.

The chart shows the history of exchange rates for the pair and Bitcoin Hash. Source: blockchain
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Source: CoinTelegraph