A crypto analyst known as Astronomer (@astronomer_zero on X) believes he’s found a reliable signal for when Bitcoin is at its lowest point. He’s looking at the cost of electricity miners use to produce Bitcoin.
The Electricity Cost Signal
Astronomer says that historically, when the cost of producing Bitcoin drops below its market price, it’s been a great time to buy. He’s even found that this signal has been accurate 17 out of 17 times.
He explains that when miners have to spend more to produce Bitcoin than they can sell it for, they’re less likely to sell their Bitcoin. This reduces the supply of Bitcoin available in the market, which can drive the price up.
The Current Situation
Right now, the cost of producing Bitcoin is about $60,711, while the price is around $56,713. This means the conditions for Astronomer’s signal are present again.
Should You Buy Now?
While Astronomer’s analysis is backed by historical data, he’s still cautious. He acknowledges that things could be different this time.
Ultimately, the decision of whether or not to buy Bitcoin is up to you. But if you’re looking for a signal to help you make that decision, Astronomer’s analysis is worth considering.
