The fair value of Bitcoin stands at $167,800, according to Charles Edwards, founder of Capriole Investments. By his calculations, the asset is trading 45% below its “energy value.”
Hash Rates are flying and Bitcoin Energy Value just hit $145K. That puts price at a 31% discount to value. We are trading at a deeper discount to value today at $116K, than when Bitcoin was at $10K in September 2020.
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— Charles Edwards (@caprioleio) August 8, 2025
The researcher employs the Energy Value metric, developed by his company in 2019. It determines Bitcoin’s fair value as a function of energy expenditure, supply growth rates, and a constant reflecting its dollar value.
According to Glassnode, the hash rate of the leading cryptocurrency’s network has reached a record level of 1.031 ZH/s. This high computational power confirms miner activity.
“Hash rates have soared, and the average energy value of Bitcoin has just reached $145,000,” Edwards wrote.
He added that this indicates a 31% price discount relative to the average value. Edwards emphasized that the current discount at a price of $116,000 is more significant than in September 2020, when Bitcoin was priced at $10,000.
According to Capriole’s theory, price increases incentivize miners to boost investments. This raises the hash rate and, consequently, Bitcoin’s “energy value.”
However, if market value rises solely due to speculation without a corresponding increase in energy expenditure, it historically always returns to its “energy value” level.
In July, CryptoQuant analyst Yonsei_dent noted that Bitcoin could reach the peak of the current cycle by the end of August.
Later, an expert known as CryptoBullet stated that only three months remain until the end of the first cryptocurrency’s bullish phase. He reached this conclusion based on post-halving patterns.