New Bitcoin Yardstick Metric Says $20,000 BTC Is Now “Extraordinarily Cheap”

There's only been one time BTC has been this good relative to hash rate - and that was long before even the historic record of 2017.

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A simple yet elegant Bitcoin (BTC) price metric has returned to pre-2017 bull market lows.

As noted by its creator, Charles Edwards, CEO of asset manager Capriole, the Bitcoin Yardstick is now at its second lowest level in history.

Yardstick shows second lowest reading on record

As on-chain metrics converge to set up a classic macro bottom for BTC/USD, a new candidate suggests that Bitcoin is even more oversold than the average hodler thinks.

The Bitcoin Yardstick measures the ratio of Bitcoin market capitalization to hash rate – two fundamental metrics that, when compared to each other, offer key price insights.

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As Edwards explains, the lower the value, the "cheaper" bitcoin is - the more hash rate is applied to secure low-cost coins.

Although he cautions that this is "not investment advice", it has implications for potential buyers - much of the unrealized value lies in the amount of work done to secure Bitcoin supply during price suppression.

Currently, the Bitcoin network hash rate is near all-time highs, while the price is down about 75% from its last all-time highs seen in November 2021.

“Today we see the second lowest reading for the Bitcoin Yardstick in Bitcoin history,” Edwards commented:

"This means that on a relative basis, Bitcoin is extraordinarily cheap considering the amount of power used on what is the most powerful computer network in the world."