Bitcoin is offering “off-the-chart” value, according to an analyst, as its price diverges sharply from its hash rate.
Key points:
- Bitcoin price is now diverging from its hash rate to a degree never seen before, signaling a potential mismatch between market valuation and network strength.
- The Bitcoin Yardstick metric places BTC firmly in a “deep value” zone, suggesting the asset may be undervalued relative to its underlying fundamentals.
- Despite a roughly 40% drawdown in price, Bitcoin’s hash rate continues to hover near all-time highs—indicating sustained miner confidence and network security even amid weaker market conditions.
Bitcoin Yardstick signals record “deep value”
Updating followers on X, Charles Edwards said his Bitcoin Yardstick metric has entered uncharted territory, pointing to historically deep value levels.
Developed by Edwards, founder of Capriole Investments, the metric compares Bitcoin’s market capitalization to its hash rate, normalized over a two-year period to assess relative valuation.
The Yardstick effectively measures how much “value” the network is generating at a given price and level of computational power.
Edwards likened the concept to a price-to-earnings ratio in traditional markets—except instead of earnings, it evaluates the amount of energy and computational work securing the network relative to Bitcoin’s market price.
“Lower readings = cheaper Bitcoin = better value.”
In February, Bitcoin recorded its lowest-ever reading on the Bitcoin Yardstick metric, dropping well below levels seen during the 2022 bear market.
After falling to 15-month price lows near $59,000, the Yardstick declined to 0.35—below one standard deviation from its historical mean, a threshold Charles Edwards considers indicative of “cheap” conditions.
The metric has since recovered slightly to around 0.40 but remains firmly within undervalued territory relative to Bitcoin’s hash rate.
“Bitcoin yardstick is literally off the chart in deep value,” Edwards told followers on X this week.
Hash rate holds firm despite price drop
Bitcoin miners have faced pressure amid this year’s price decline, yet the network’s hash rate has remained resilient.
Despite a roughly 40% drop in BTC price, hash rate continues to hover around the one zettahash per second (ZH/s) mark, according to data from BitInfoCharts—highlighting sustained network strength even during weaker market conditions.
The disparity means Bitcoin’s hash rate has declined far less than its price, which remains over 40% below its all-time highs from October 2025.
Earlier in March, Charles Edwards also pointed to a “measured collapse” in miner selling as prices rebounded from recent lows—a trend that has historically been seen as a bullish signal.
