Charles Edwards has highlighted how the Bitcoin Yardstick valuation indicator is “off the chart” in deep value at the moment.Bitcoin Yardstick Is Deep Inside Undervalued ZoneIn a new post on X, Capriole Investments founder Charles Edwards has talked about the latest trend in the Bitcoin Yardstick. The “Yardstick” is a valuation tool for the cryptocurrency devised by Edwards that is similar to a Price-to-Earnings (PE) Ratio, but in place of “earnings,” the metric instead uses the energy work done to secure the BTC network.The stand in for this work done is the “Hashrate,” a measure of the total amount of computing power connected to the Bitcoin blockchain by miners as a whole. The Yardstick takes the ratio between the market cap and this metric to represent BTC’s value.Now, here is the chart shared by Edwards that shows how the Bitcoin Yardstick has changed over the last few years:As displayed in the above graph, the Bitcoin Yardstick has plummeted over the last few months as the cryptocurrency’s price has gone through a bearish shift. This suggests that the asset’s value has dropped relative to the network Hashrate.The indicator has recently been floating in the zone below -1 standard deviation (SD) from the mean, which is a region that the analyst’s model describes as pertaining to a “cheap value.” From the chart, it’s visible that the 2022 bear market also saw the Yardstick plummet into this region, but the recent lows in the metric have actually been lower than any level from back then. “Bitcoin yardstick is literally off the chart in deep value,” noted Edwards.While the cryptocurrency has been severely undervalued from the perspective of the indicator, it may not necessarily mean a bottom is here. In the previous bear market, the indicator was in the undervalued region for months before a turnaround appeared.An interesting feature in the graph is that the Yardstick saw a sudden spike to a normal-value zone in the final week of January. The BTC price was moving sideways while this happened, so the culprit must have been the Hashrate. And indeed, this spike coincided with a major snow storm in the United States that disrupted the power grid, forcing miners to curtail their electricity usage.The resulting drop in the Hashrate was very significant, but it lasted only temporarily. Though, before the computing power even returned, the Yardstick plummeted anyway, owing to the sharp price crash that Bitcoin saw to kick off February.BTC PriceBitcoin has returned to the $71,000 level following its quick rebound over the past day.