Bitcoin (BTC) is currently trading at a significant discount, with experts suggesting that it is undervalued by about 40%. According to Charles Edwards, the founder of Capriole Investments, Bitcoin’s energy value, which takes into account the mining costs and energy consumption, stands at $130,000 following the April 2024 halving event. This energy value is seen as an indicator of Bitcoin’s true worth, making its current market price relatively low by comparison.

Recent trends in the Bitcoin market support this view, with substantial amounts of Bitcoin being withdrawn from major exchanges like Coinbase and Binance, indicating increased demand from institutional investors. On April 24, more than 8,756 BTC (around $830 million) were taken off Coinbase, a move that suggests institutions are likely behind the increased buying activity. This is aligned with a broader pattern of rising interest in spot Bitcoin ETFs, where institutional investors have been particularly active. Bloomberg’s ETF analyst, Eric Balchunas, recently highlighted that institutions had poured approximately $3 billion into Bitcoin over just a few days, indicating strong buying momentum.

The concept of Bitcoin’s “intrinsic value” is rooted in its energy consumption. Bitcoin’s price, according to Edwards, should reflect the energy used to mine it, and this valuation suggests that Bitcoin is currently being traded below its true worth. While this creates a potential buying opportunity, it also shows the disconnect between market sentiment and the actual value of the cryptocurrency.

This surge in institutional interest is also reflected in the growing inflows into Bitcoin ETFs. As institutional demand for Bitcoin rises, Bitcoin’s price shows signs of strength, especially in the spot market. The large withdrawals from exchanges, particularly from Coinbase and Binance, indicate that investors are increasingly viewing Bitcoin as a long-term asset. While these outflows are typically seen as bullish signals, some analysts caution that they don’t automatically guarantee a continued rally. For instance, in 2021, despite significant outflows from exchanges, Bitcoin’s price was affected by external factors, such as China’s crypto ban. This highlights the unpredictable nature of cryptocurrency markets.

Bitcoin’s recent performance has been striking, with the cryptocurrency seeing a major uptick in value in April 2025. From April 21 to April 25, Bitcoin rose by 11%, marking its highest weekly return of 2025 so far. This increase mirrors price actions seen in Q4 of 2024, leading some analysts to predict that Bitcoin could continue its upward trend. During the final months of 2024, Bitcoin experienced sharp gains, and a similar fractal pattern appears to be playing out in 2025. If the trend continues, Bitcoin could potentially break the $100,000 mark in the coming weeks.

Fractal patterns in Bitcoin’s price behavior suggest that past trends could repeat, but they are not always reliable. Bitcoin’s performance in late 2024, which saw rapid price gains, may be an indication of what is to come. However, Bitcoin is currently facing resistance at the $96,100 level, which could act as a barrier to further price increases. If Bitcoin is able to overcome this resistance, it could trigger a more significant rally, pushing prices to new highs.

The ongoing buying activity and institutional interest indicate that Bitcoin’s future remains promising, especially as the market sees a resurgence of bullish sentiment. While there are challenges and resistance levels to consider, the strong demand for Bitcoin, especially from institutional players, suggests that the cryptocurrency could be poised for a breakout in the near future. As Bitcoin’s price continues to consolidate and institutional interest grows, the market may be gearing up for a major rally.