Indicator Overview

The indicator is Thermocap. It measures the cumulative US dollar value of all Bitcoin mined at the time of issuance, reflecting the total economic input (mainly energy and capital expenditure by miners) spent to secure the network. It essentially serves as a fundamental cost-basis floor for the entire Bitcoin network.

How To Use

Thermocap acts as a proxy for the minimum valuation of the Bitcoin network based on the energy and hardware costs incurred to create all existing supply.

It is often used as a strong, long-term support level. Historically, the Bitcoin market cap has rarely spent significant time trading below Thermocap, as this would imply the market price is lower than the aggregate cost to produce the asset.

When the market cap trades close to or below Thermocap, it suggests a period of extreme undervaluation and capitulation, offering high-conviction opportunities for long-term accumulation near the network's fundamental production cost.