{"id":22106,"date":"2023-09-08T18:50:40","date_gmt":"2023-09-08T18:50:40","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-energy-value-metric-puts-btcs-fair-value-at-47k-analyst\/"},"modified":"2023-09-08T18:50:41","modified_gmt":"2023-09-08T18:50:41","slug":"bitcoin-energy-value-metric-puts-btcs-fair-value-at-47k-analyst","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-energy-value-metric-puts-btcs-fair-value-at-47k-analyst\/","title":{"rendered":"Bitcoin energy value metric puts BTC\u2019s \u2018fair value\u2019 at $47K \u2014 Analyst"},"content":{"rendered":"
Bitcoin\u2019s\u00a0price is trading in a frustratingly tight range between $25,500 and $26,500, leaving traders unsure of the next direction that the asset could take.<\/p>\n
However, Charles Edwards, founder of Capriole Investments, believes that Bitcoin\u2019s (BTC)\u00a0current price presents a low-risk long-term buying opportunity. Edwards\u2019 view is based on Bitcoin\u2019s production cost and energy value.<\/p>\n
Capriole Investments energy value theory gives a fair value price of $47,200, and Edwards reiterated his bullish stance by saying that Bitcoin\u2019s production cost gives a floor price estimation of around $23,000 with a 100% hit ratio.<\/p>\n
The trade has a risk-reward ratio of 1:5, with the potential for even higher price targets, but Edwards added it is based on the assumption that the rally price “would stop at fair value, which it never has.\u201d<\/p>\n
\nMy favorite Bitcoin chart right now. The relative distance between Bitcoin’s price, the historical price floor (Bitcoin Electrical Cost) and fair value (Bitcoin Energy Value). That\u2019s a 5:1 risk-reward assuming no-hype and that price would stop at fair value, which it never has. pic.twitter.com\/J2yuGcNX9q<\/a><\/p>\n