Bitcoin is showing unprecedented “value-for-money” as price diverges from mining hash rate, according to the Bitcoin Yardstick metric.
Key points:
– Price action is diverging from hash rate to an extent not previously seen.
– The Bitcoin Yardstick indicates price is in its “deep value” range.
– Hash rate remains near historical highs despite a roughly 40% BTC price drawdown.
Charles Edwards, founder of Capriole Investments, said his Bitcoin Yardstick hit new lows in February. The Yardstick divides market capitalization by hash rate and normalizes that ratio over two years, producing a measure of Bitcoin’s value relative to the energy securing the network — akin to a PE ratio but using network work instead of earnings. Edwards has summarized the interpretation as: lower readings = cheaper Bitcoin = better value.
In February, after BTC fell to about $59,000 — the lowest in roughly 15 months — the Yardstick reached a record low of 0.35, below one standard deviation of its mean, a level Edwards treats as indicative of “cheap” Bitcoin. It later measured 0.40, still inside cheap territory relative to hash rate. Edwards said the Yardstick was “literally off the chart in deep value.”
At the same time, miners have maintained hash rate near one zettahash per second (ZH/s), per BitInfoCharts. That resilience means hash rate has fallen far less than price, which sits more than 40% below its October 2025 all-time highs. In early March Edwards also noted a “measured collapse” in miners’ BTC selling after the price drop — a pattern that has historically been bullish for price recovery.
Earlier reporting has highlighted that miner influence on price has declined in the era of growing institutional investment, such as ETFs.
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