https://cointelegraph.com/news/bitcoin-deep-value-over-btc-price-nears-70k

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8 Mar 2024

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WILLIAM SUBERG
28 MINUTES AGO

Bitcoin ‘deep value is over’ says analyst as BTC price nears $70K line

Bitcoin at just under $70,000 is “fairly priced” in terms of energy expenditure, the latest analysis of on-chain BTC price action and miner behavior concludes.
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3:28
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Bitcoin
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has left its “deep value” zone as on-chain data points to a seismic shift in BTC price dynamics.In an X thread on March 7, Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, hailed a “new chapter” for the market.

Bitcoin “fairly priced” for first time in two years

Bitcoin at all-time highs is a serious transformation from BTC price action just months ago, but on-chain analysis shows that bulls have simply redressed the balance.
At around $70,000, Edwards shows, Bitcoin is “fairly priced” in terms of the amount of energy used by miners to participate in the network.
Capriole’s Bitcoin Energy Price metric shows the phenomenon playing out for the first time since late 2020.
Edwards describes the metric as “Bitcoin’s intrinsic value priced from the pure Joules of energy into the network only.”
“No wacky formulas, no power laws,” he explained.

“Energy alone maps the fair value of Bitcoin from inception. Currently at $70K, making Bitcoin fairly valued for the first time in 2 yrs.”

Bitcoin Energy Price. Source: Charles Edwards on X
Energy price is just one example of an extensive list of market gauges that are now pointing toward even higher BTC prices.

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Even miners, currently selling significant amounts of BTC despite the upcoming block subsidy halving, are enjoying a return to solid profit margins.
“Bitcoin broke out of the cost of production in recent months, along with the Ordinals fee boost, Bitcoin Mining is once again highly profitable,” Edwards wrote.

“As you can see, these breakouts often lead to repricing a lot higher. But the era of value Bitcoin is over.”

Bitcoin miner sell pressure. Source: Charles Edwards on X
On that note, Edwards believes that those waiting for bargain Bitcoin buying opportunities have missed their opportunity.
“Bitcoin deep value is gone. That ship has sailed. You had 2 years to pick up undervalued Bitcoin. Instead an exciting new chapter has begun,” he concluded.

“Welcome to the Bitcoin Momentum era.”

Concerns over BTC price correction linger

As Cointelegraph continues to report, not everyone is feeling optimistic about what the immediate future holds.
Related: Bitcoin accumulation phase ends as ETFs fuel new $100K BTC price target
Some see all-time highs as a watershed that will instigate a protracted correction, contrasting with the idea that institutional demand will buoy the market further.
Updating his view of how events could pan out in the coming few months, Venturefounder, a contributor to on-chain analytics platform CryptoQuant, suggested that both Bitcoin and the largest altcoin, Ether (ETH), need to make a more definitive breach of current highs.
He referenced the upcoming decision over whether or not to allow spot Ether exchange-traded funds (ETFs) in the United States.
“If BTC and $ETH fail to make a definitive new ATH breakout in March, I think it’s more likely we see more downside in April/May leading to the halving and ETH ETF approval,” he forecast.
Venturefounder added that “March is probably the most important month of this cycle following such bullish February month.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Disclaimer: The information contained on this widget is not intended as, and shall not be understood or construed as legal, tax, investment, financial, or other advice. Nothing contained on this widget constitutes a solicitation, recommendation, endorsement, or offer by Cointelegraph or any third party service provider to buy or sell any cryptoassets or other financial instruments. We advise you to spend only what you can afford to lose, and always seek independent financial advice if you are in doubt. You should not purchase any cryptoassets if you do not fully understand the nature of your purchase and the risks involved. We recommend that you refer to the issuer’s/ advertiser’s t&c and help/ support pages for more information.
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HELEN PARTZ
31 MINUTES AGO

Pro-Bitcoin Senator Cynthia Lummis pushes stablecoin bill

Pro-Bitcoin Senator Cynthia Lummis is drafting regulations for stablecoins after attacking major stablecoin firm Tether in 2023.
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United States Senator Cynthia Lummis is drafting regulations for stablecoins, a type of cryptocurrency pegged to real-world assets to ensure stable prices.Lummis has been working jointly with Senator Kirsten Gillibrand for several months on a bill aiming to provide regulatory clarity for stablecoins and protect investors, the U.S.-based news agency Axios reported on March 7.
Citing several spokespeople for Lummis and Gillibrand’s offices, the report notes that the senators hope to officially announce the news following encouraging feedback from multiple stakeholders.
The New York Department of Financial Services, the Federal Reserve, the Treasury Department and the National Economic Council have provided technical assistance on the Senate bill, the report mentioned.
Lummis and Senator Kirsten Gillibrand at the DC Blockchain Summit in 2022. Source: Axios
For Lummis and Gillibrand, the work on stablecoin regulation would not be their first foray into drafting cryptocurrency-related legislation. In July 2013, the senators announced a joint effort to reintroduce legislation aimed at establishing a comprehensive regulatory framework for digital assets.
Lummis has emerged as a major pro-Bitcoin lawmaker in the U.S., advocating for Bitcoin multiple times.
In October 2021, Lummis urged the U.S. government to “thank God for Bitcoin” amid U.S. President Joe Biden approving another raise of the country’s debt limit. Lummis called on the U.S. government to take advantage of Bitcoin because it is decentralized and not controlled by any government.
Lummis is also known for accumulating significant amounts of Bitcoin, buying BTC in batches of $50,000 and $100,000 in 2021.
While bullish on Bitcoin, Lummis has grown skeptical about some major stablecoins recently, including Tether
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, the largest stablecoin by market capitalization and the most traded cryptocurrency at the time of writing.Related: UK regulations will allow stablecoins and CBDCs to coexist, says former BoE fintech lead
In October 2023, Lummis backed a massive campaign against Tether, asking the U.S. Justice Department (DOJ) to consider criminal charges against the stablecoin firm amid some reports alleging that it engaged in illicit financial transactions. Tether subsequently reacted to lawmakers’ requests for DOJ action, claiming it wants to be a “world class partner” to U.S. regulators.
Most recently, Lummis has also been aggressively opposing central bank digital currencies, arguing that such digital currencies are “anti-democratic and a means of financial censorship.”
Magazine: The DeFi bots pumping Solana’s stablecoin volume
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