Bitcoin (BTC), the leading cryptocurrency, is on the cusp of a significant achievement as its Energy Value nears $100,000 for the first time in its nearly 16-year history. This Energy Value reflects the intrinsic worth of Bitcoin based on the raw electricity consumption required for its mining operations. Analyst Charles Edwards of Capriole Investments, who developed the predictive model five years ago, has reiterated the accuracy of his forecasts.
According to Edwards, Bitcoin’s Energy Value is poised to reach $100,000, a milestone he initially predicted would be achieved by 2025. The model takes into account several factors, including the efficiency of cutting-edge mining hardware and the aggregated hashrate of the Bitcoin network.
Currently, both Bitcoin’s mining difficulty and hashrate are at all-time highs, indicating robust miner commitment. Bitcoin’s difficulty recently surged to 95.67 trillion after the latest adjustment, while the network’s hashrate reached a record-breaking 925 exahashes per second (EH/s) last week. Historically, Bitcoin’s price has tended to rise alongside its Energy Value, making this trend a bullish signal for supporters of the cryptocurrency.
Despite these positive developments, Bitcoin’s price is currently battling resistance at the $69,000 level. Just three hours ago, it briefly climbed to $69,212, according to CoinMarketCap, before retreating to approximately $68,600. At the time of reporting, Bitcoin is trading at $69,700, reflecting a 1.9% increase in the past 24 hours, outperforming the broader market benchmark, which saw a 1.4% rise.
Following recent concerns surrounding Tether, the Cryptocurrency Fear and Greed Index has returned to the “greed” zone, scoring 72 out of 100. Additionally, Bitcoin’s trading volume has nearly doubled in the last 24 hours, reaching $87 billion.
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