Bitcoin’s Energy Value Shows It’s 31% Undervalued

  • Bitcoin trades 31% below its Energy Value estimate

  • Energy Value model pegs fair price at $145,000

  • This undervaluation signals strong long-term potential

A popular valuation model, the Energy Value metric, suggests Bitcoin’s current market price doesn’t reflect its true worth. According to this model, Bitcoin should be trading around $145,000, but it’s currently priced about 31% lower.

The Energy Value model measures Bitcoin’s fair price based on the energy used to mine it. As Bitcoin’s mining network grows stronger and consumes more power, the model suggests this energy input gives Bitcoin more intrinsic value.

Understanding the Energy Value Metric

The Energy Value metric, developed by analyst Charles Edwards, links the value of Bitcoin to the energy expended in its production. Unlike market speculation or sentiment-based pricing, this method ties Bitcoin’s value to a measurable resource: electricity.

Here’s why that matters:

  • The cost to produce Bitcoin is rising due to increased mining difficulty and energy costs.

  • If miners are investing more energy (and money) into mining, it indicates strong faith in Bitcoin’s long-term value.

  • Yet, the market price hasn’t caught up with this intrinsic value—creating a large valuation gap.

Bitcoin is trading way below what it should be worth.

The Energy Value metric says Bitcoin's fair price is around $145,000. That's a huge 31% discount from its current price.

This big difference between its real strength and its price is a very good sign. pic.twitter.com/KxUSB9PeOy

— Satoshi Club (@esatoshiclub) August 8, 2025

What This Discount Could Mean for Investors

Bitcoin trading at a 31% discount to its Energy Value may suggest a rare buying opportunity. Historically, similar valuation gaps have preceded major price rallies.

While no model can predict future prices with certainty, the Energy Value metric helps investors look beyond short-term market noise. It signals that Bitcoin remains fundamentally strong—even if its market price doesn’t reflect that strength just yet.

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