A key on-chain metric indicates Bitcoin is at its most undervalued level on record compared to the computing power securing its network. The Bitcoin Yardstick, an indicator comparing price to hash rate, entered unprecedented “deep value” territory in February as the cryptocurrency’s price fell sharply while miner activity remained near all-time highs.
Bitcoin price action is diverging from its hash rate to an extent never seen before. Charles Edwards, founder of the hedge fund Capriole Investments, confirmed his Bitcoin Yardstick metric was in new territory this week, stating on X that it is “literally off the chart in deep value.” The metric fell to a record low of 0.35 in February after Bitcoin’s price hit 15-month lows near $59,000.
The Bitcoin Yardstick divides market capitalization by hash rate, normalized over two years. Edwards explained that the concept is similar to a price-to-earnings ratio, but uses the energy securing the network instead of corporate profits. He noted that “lower readings = cheaper Bitcoin = better value,” with a reading below one standard deviation from the mean signaling Bitcoin is “cheap.”
Despite a price decline of more than 40% from its October 2025 all-time highs, Bitcoin’s hash rate has remained resilient. Data from BitInfoCharts shows it continues to circle the one zettahash per second level, which is near its historical peak. This dynamic has created the record divergence captured by the Yardstick.
In mid-March, Edwards also observed a “measured collapse” in selling pressure from Bitcoin miners following the price drop. He highlighted this trend historically, stating on X, “Measured collapse in Bitcoin miner selling after a price drop are ALL BULLISH.” The current Yardstick reading remains at 0.40, still well within the defined “cheap” territory.
