Bitcoin is up to 45% undervalued based on energy-based fair value, raising the possibility of reaching $160,000.

An analysis suggests that the actual value of Bitcoin (BTC) is up to 45% higher than its current market price. According to the so-called 'fair value' calculated through energy-based valuation, the price per Bitcoin should reach up to $167,800 (approximately 232.92 million won). This analysis was revealed through a post by Charles Edwards, founder of Capriole Investments, on X (formerly Twitter) on the 6th. Considering the current Bitcoin price of around $116,000 (approximately 161.24 million won), the actual value is approximately 45% higher. Edwards' 'energy value' indicator for Bitcoin assesses the appropriate price by reflecting the energy input for mining, supply increase rate, and the nominal currency (dollar) value of energy. The premise is simple: if no miners participate, the network's value becomes '0', but conversely, a high hash rate indicates the system's robustness, which can be attributed a corresponding asset value. According to the on-chain analysis platform glassnode, the recent network's average hash rate is 1.031 zettahashes per second (ZH/s), breaking an all-time high and showing Bitcoin maintains a strong mining participation base. This also suggests a potentially higher valuation compared to when Bitcoin last broke $10,000 in September 2020. The analysis that Bitcoin is currently undervalued goes beyond simple technical perspectives. Based on tangible indicators like energy consumption and hash power, it significantly raises the possibility of Bitcoin's market revaluation in the medium to long term. From an investor's perspective, it is crucial to pay attention to the mining industry's sustainability and hash rate trends. The recovery of Bitcoin's appropriate value will likely depend on whether these indicators maintain or show an upward trend.