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Do you believe Bitcoin is dead? Think twice!

Bitcoin went through a lot of selling pressure this year, but several on-chain indicators point to a possible bottom formation.

The whole crypto sector went through one of the roughest bear markets in history. However, there are several signalsΒ pointing to a growing interest in crypto, provided in the tweet byΒ Charles Edwards, the founder of Capriole fund.

Bitcoin below electrical cost

One of the main ways to measure if Bitcoin is overvalued or undervalued is by looking at its production and electrical cost.Β Only a few times in history has Bitcoin fallen below its electrical cost.Β It’s pretty logical as miners want to mine bitcoins and sell them for a higher price.Β 

Related article:Β Billionaires with extreme differences on the state of crypto

It has got pretty tough for Bitcoin miners in 2022.Β However, it may be a great time for investorsΒ as it has been historically proven as one of the best times to buy. Needless to say that on these occasions, it took only a few weeks until Bitcoin rose above the electricity cost again.

Bitcoin production vs electrical cost chart, source: tradingview.com, author: capriole

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I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

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