Bitcoin Deeply Undervalued? ‘Yardstick’ Metric Hits Off-The-Chart Lows

Charles Edwards has highlighted how the Bitcoin Yardstick valuation indicator is “off the chart” in deep value at the moment.

Now, here is the chart shared by Edwards that shows how the Bitcoin Yardstick has changed over the last few years:

As displayed in the above graph, the Bitcoin Yardstick has plummeted over the last few months as the cryptocurrency’s price has gone through a bearish shift. This suggests that the asset’s value has dropped relative to the network Hashrate.

While the cryptocurrency has been severely undervalued from the perspective of the indicator, it may not necessarily mean a bottom is here. In the previous bear market, the indicator was in the undervalued region for months before a turnaround appeared.

The resulting drop in the Hashrate was very significant, but it lasted only temporarily. Though, before the computing power even returned, the Yardstick plummeted anyway, owing to the sharp price crash that Bitcoin saw to kick off February.

Bitcoin has returned to the $71,000 level following its quick rebound over the past day.