Bitcoin’s price divergence from mining activity has reached an unprecedented level, with the Bitcoin Yardstick metric now flagging the market as being in “deep value.”
Developed by Charles Edwards, founder of Capriole Investments, the Bitcoin Yardstick is calculated by dividing Bitcoin’s market capitalization by the network hash rate and normalizing that ratio over a two‑year window. The result is a gauge of Bitcoin’s price relative to the computational work securing the network — a concept comparable to a price-to-earnings ratio but substituting network work for earnings. In Edwards’ framework, lower Yardstick readings imply cheaper Bitcoin and stronger value.
After BTC dropped to roughly $59,000 in February — its weakest level in about 15 months — the Yardstick hit an all-time low of 0.35, falling below one standard deviation of its historical mean. It later ticked up to 0.40, which Edwards still classifies within the “cheap” range. Edwards described the indicator as being “literally off the chart in deep value.”
The unusual signal reflects a striking disconnect: hash rate has stayed near record highs while price has retraced substantially. BitInfoCharts shows network hash rate around one zettahash per second (ZH/s), indicating miners have maintained high levels of computing power even as BTC trades more than 40% below its October 2025 all-time highs.
Edwards also observed a “measured collapse” in miners’ Bitcoin selling following the price drop — a pattern that historically precedes price recoveries. At the same time, broader shifts in the market, including growing institutional flows such as ETFs, have reduced the relative influence miners exert on price moves compared with earlier cycles.
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