Charles Edwards, the founder of Capriole Funds and a crypto expert, believes that if a bullish halving pattern holds true, Bitcoin (BTC) might see a 500% price recovery.
If Bitcoin’s post-halving returns hold true for 2020, Edwards predicts that the cryptocurrency may hit $280,000 by 2025.
Although one may argue that returns for this cycle are lower, Edwards thinks the 2020 cycle’s performance was average and an exception.
https://x.com/caprioleio/status/1754431779094601953?s=20
2020 was deemed the worst Bitcoin bull market in history by Capriole Funds founder. He links the 50% mining network destruction by China and the most aggressive Fed tightening cycle in history to Bitcoin’s underwhelming performance. According to Edwards, these two enormous, stagnant influences on Bitcoin are unlikely to be replicated in the next two years in terms of their scale.
According to Edwards, 2024 will be the complete opposite of 2021. With Fed Chair Jerome Powell predicting three rate decreases this year, the Fed has started to ease. He concluded that a declining dollar may indicate a rising value for Bitcoin.
Bitcoin halving, ETF might contribute to 800% surge for Bitcoin
Using Gold as an analogy, Edwards thinks the January Bitcoin ETF launch is just as powerful as a “second halving.” For instance, he asserted that the market capitalization of gold was four times more than that of Bitcoin in 2004 when the Gold ETF was established.
Gold has seen a parabolic rise of more than 300% to $13 trillion in less than seven years, with a market value of about $3.3 trillion.
Currently, the market value of bitcoin is little over $800 billion. Smaller assets can frequently yield higher upside returns; Edwards shares his theory on the dramatic price increase of Bitcoin. He said that adoption rates for each significant technology advancement over the past century have accelerated.
In light of this, Edwards believes that a 300% increase in the price of Bitcoin over the course of the next two to five years—driven only by ETFs—would be prudent. Furthermore, a 500% gain in the 18 months that followed the halving would be typical given Bitcoin’s past. This contributes to the overall goal of an 800% increase.
The crypto researcher comes to the conclusion that a reasonable estimate for Bitcoin’s price in the next years might be $300,000 based on the two most significant elements for the cryptocurrency this cycle: the Bitcoin ETF and halving.
Since a lot might happen between now and then to cause these statistics to climb or fall, this is still just conjecture. Prior to making important judgements, one should do their study and be well-informed because other evidence could become more significant at a later date.
