Bitcoin is currently considered 31% undervalued against its energy-based 'fair' price, which is calculated to be around $167,800 per coin. According to Charles Edwards, founder of Capriole Investments, Bitcoin's true value is about 45% greater than its present price of $116,000. The Energy Value metric indicates that this price reflects energy inputs, supply growth, and the fiat value of energy. Recent data reveals that Bitcoin's hash rate has reached record levels, indicating robust miner activity, which contributes to this valuation. Despite a dip in the price of Bitcoin by nearly 10% since its previous peak, the fundamentals support a bullish outlook, suggesting that Bitcoin could rise significantly if prices align with its Energy Value. The analysis emphasizes that rising market prices usually correspond with increases in committed energy inputs, which, in turn, boost Bitcoin's Energy Value. This dynamic presents a compelling case for potential future price surges as long as mining activity remains strong.

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