Charles Edwards, founder of digital asset hedge fund Capriole Investments, says bitcoin is “off the chart” in terms of value as its price diverges from network hashrate to a degree never seen before.
What the Bitcoin Yardstick measures
The Bitcoin Yardstick divides market cap by hash rate, normalized over a two-year period, to express how much “value” buyers are getting at any given price and hash rate level.
Edwards described the metric when he introduced it in 2022:
“Similar in concept to a ‘PE Ratio,’ except instead of stock earnings, the Bitcoin Yardstick is taking the ratio of energy work done to secure the Bitcoin network in relation to price. Lower readings = cheaper Bitcoin = better value.”
Readings below one standard deviation of the mean indicate bitcoin is “cheap” by this measure.
Record lows hit in February
In February 2026, the Yardstick fell to 0.35 — its lowest reading on record, going well beyond the lows seen during the 2022 bear market.
This came after bitcoin hit 15-month lows near $59,000 earlier that month, leaving the asset more than 40% below its all-time highs from October 2025.
The Yardstick has since recovered slightly to 0.40, but Edwards told X followers this week:
“Bitcoin Yardstick is literally off the chart in deep value.”
Hash rate, meanwhile, has held near the one zettahash per second level — close to its historical highs — despite the steep price decline, which is what drives the Yardstick to such extreme readings.
Miners cutting selling as price recovers
Earlier in March, Edwards flagged another historically bullish signal, noting a “measured collapse” in miner BTC selling following the price drop.
He stated:
“Measured collapse in Bitcoin miner selling after a price drop are ALL BULLISH.”
Miners have faced significant financial pressure this year, though their reduced selling has historically preceded price recoveries.
The Bitcoin mining difficulty and hash rate holding near record levels while price sits deeply discounted is the core driver behind the Yardstick’s unprecedented reading, according to Edwards.
