Bitcoin (BTC) is currently trading at a 40% discount to its intrinsic value, suggesting significant undervaluation in the market. As institutional interest in the cryptocurrency continues to rise, especially through spot Bitcoin Exchange-Traded Funds (ETFs), the crypto market is buzzing with anticipation about Bitcoin’s potential to reach new heights.
Bitcoin’s Undervaluation and Institutional Buying Surge
According to Charles Edwards, founder of Capriole Investments, Bitcoin’s intrinsic value is estimated at $130,000 based on its energy value—calculated from mining costs and energy consumption—following the April 2024 halving. This indicates that the current price of Bitcoin, hovering around $94,264, is significantly below its true value. This 40% discrepancy has caught the attention of institutional investors, who appear to be ramping up their buying activity.
Bitcoin Energy Value is at $130K. We are one year post Halving and Bitcoin is trading at a whopping 40% discount to its intrinsic value. pic.twitter.com/kbqTgTPp5d
— Charles Edwards (@caprioleio) April 25, 2025
Data from CryptoQuant shows a notable uptick in Bitcoin withdrawals from major exchanges like Coinbase and Binance. On April 24, over 8,756 BTC (worth approximately $830 million) were withdrawn from Coinbase, a clear indication of institutional demand. Binance also saw a massive outflow of 27,750 BTC on April 25, marking the third-largest Bitcoin outflow in the exchange’s history. These withdrawals suggest that institutions are acquiring Bitcoin in anticipation of a potential price rally.
Spot Bitcoin ETF Inflows Reach $3 Billion in Just One Week
The surge in Bitcoin withdrawals aligns with the spot Bitcoin ETF inflows, which have reached $3 billion over the past week, as reported by Bloomberg ETF analyst Eric Balchunas. This flood of institutional money into Bitcoin ETFs reflects the growing confidence among large investors that Bitcoin is poised for substantial gains.
Despite the bullish sentiment driven by these inflows and outflows, analysts urge caution. While large Bitcoin withdrawals often signal strong demand, history shows that they do not always guarantee sustained price rallies. For example, massive outflows in 2021 failed to prevent a market crash following China’s crypto ban.
Can Bitcoin Break $100K?
Bitcoin’s recent price action mirrors patterns seen in Q4 2024, sparking hopes that it could surpass the $100,000 mark by the end of April 2025. Bitcoin’s weekly performance has seen its highest return in 2025, with an 11% increase between April 21 and 25. A continuation of this momentum could push BTC above $100,000, especially if it follows a similar fractal pattern to its November 2024 rally.
However, Bitcoin faces significant overhead resistance at the $96,100 level, which could impede its path toward new all-time highs. Analysts remain cautious, acknowledging that while fractal patterns can indicate potential breakouts, they are not foolproof.
Also Read: US Spot Bitcoin ETFs See Record $938M Daily Outflow Amid Market Struggles
In conclusion, Bitcoin is currently trading at a significant discount, making it an attractive asset for institutional investors. With increasing ETF inflows and massive exchange withdrawals, the stage is set for a potential bullish run. However, traders should keep an eye on resistance levels and market trends to navigate the volatility ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
