Leading cryptocurrency Bitcoin (BTC) is stuck in a narrow range. Having been on a downward trend since reaching its ATH of $123,000 in mid-July, BTC has failed to break through resistance levels.
While a major breakout isn’t expected until September due to the historic summer slump, Capriole Investments founder Charles Edwards said Bitcoin’s current price of $116,000 is below its fair value.
Edwards, stating that Bitcoin is cheaper than its intended price, said that according to his company’s “energy value” metric, Bitcoin should currently be at $167,800.
At this point, Edwards said Bitcoin is about 45% lower than the price it should be.
“We are trading at a deeper discount to the $116,000 valuation today than when Bitcoin was at $10,000 in September 2020.”
Accordingly, Bitcoin would need a 45% price increase to reach its fair value.
*This is not investment advice.