Bitcoin Still Undervalued? Analyst Says Fair Price at $130,000
As of April 25, 2025, Bitcoin is trading approximately 40% below its fair value, according to Charles Edwards, founder of Capriole Investments.
This assessment is based on the Bitcoin Energy Value model, which links Bitcoin’s intrinsic value to the amount of energy used to mine it.
The model assumes that the more energy consumed, the higher the intrinsic value of Bitcoin, reflecting the network’s security and resilience.
Historical Correlation Between Price and Energy Value
According to information quoted from Beincrypto, Edwards points out that the market price of Bitcoin tends to follow its energy value over time. This correlation has been clearly observed in 2018, 2020, and 2023.
Currently, with Bitcoin’s market price around US$93,000 and its energy value estimated at US$130,000, there is a gap of approximately 40%.
Historically, such a gap has often preceded significant price surges in Bitcoin.
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Additional Consideration: Positive Signals from ETFs
Although the Bitcoin Energy Value model remains theoretical, positive signals are also coming from Bitcoin Exchange-Traded Funds (ETFs).
The inflow of funds into ETFs indicates growing institutional investor interest, providing additional support for the potential future growth in Bitcoin’s price.
Taking into account both the energy model and increasing institutional interest, analysts conclude that Bitcoin is currently undervalued and has the potential to appreciate toward its fair value of US$130,000.
