Bitcoin Price Could ‘Easily Double’ In A Short Time, Predicts Hedge Fund CEO

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As a seasoned researcher with years of experience in the crypto market, I find Charles Edwards’ analysis both insightful and captivating. His ability to draw parallels between Bitcoin’s journey and that of traditional assets like gold is commendable. The potential for Bitcoin to double its value within weeks if it breaches the $100,000 barrier is an exciting prospect, reminiscent of the wild west days of cryptocurrency.

In the most recent installment of The Milk Road Program, Charles Edwards, creator of cryptocurrency firm Capriole Investments, offered a comprehensive examination of Bitcoin‘s present situation, projected path, and the possible culmination of its traditional 4-year Bitcoin pattern.

According to Edwards, reaching the price of $100,000 for Bitcoin could trigger an extraordinary increase in its value. He believes that once this significant price level is surpassed, Bitcoin might even double in worth within a short period, perhaps weeks. Using gold’s recent growth as an example, he commented, “Gold has risen by 33% in 16 weeks, which translates to a $3.8 trillion increase in value for this ancient asset. If Bitcoin were to climb from $100,000 to $200,000, that’s only $2 trillion on an asset that operates continuously and is more widely accessible across the globe.

Bitcoin’s comparatively smaller market value in relation to gold makes it susceptible to quicker price changes. In the past, following the surpassing of previous record prices, Bitcoin has seen notable and speedy increases, entering phases where supply limitations could result in steep upward price spikes.

When Will Bitcoin Price Double?

Reaching the $100,000 threshold isn’t simply an arbitrary figure; it signifies a substantial barrier due to multiple reasons. Edwards pointed out a massive accumulation of sell orders at this price, remarking, “There is an enormous sell wall in the Bitcoin order books at $100,000. I believe that once this is overcome, it indicates that everyone who wanted to sell has done so, and we can then expect swift, steep increases in value as there’s no more supply left.

Furthermore, some investors who bought at lower prices might consider $100,000 as an ideal level to cash out their profits, which could lead to increased selling activity. However, Edwards is confident that this threshold will be overcome, particularly within the upcoming months. This optimism stems from the traditionally strong price increases Bitcoin has shown during the last quarters of a year and the first quarters of the following year.

The hedge fund CEO explained that we’re currently in the optimal phase of our cycle, which lasts between two to four months or every four years for a longer period of five to six months. Following each Halving every four years, approximately 90% to 95% of the cycle’s returns are accumulated within the subsequent twelve to eighteen months, with most occurring in just one year alone. The CEO further noted that during Q4 and Q1, the majority of the returns can be seen, especially when there is a significant monthly breakout above all-time highs.

While Edwards is bullish on Bitcoin’s prospects, he cautions investors about the inherent volatility of the market. He pointed out that corrections of 20% to 30% are normal during bull markets and that investors should be prepared for such fluctuations. “It’s normal to have 30% drawdowns every few months in a Bitcoin bull market,” he noted.

Increased market leverage might make price fluctuations more intense. Edwards pointed out that if the rise in leverage and funding rates persists without reducing the existing selling barrier, Bitcoin may retrace to support levels approximately $80,000. However, it’s important to note that this volatility is a typical aspect of Bitcoin’s development cycle and doesn’t automatically imply a prolonged bear market trend.

The End Of The Traditional 4-Year Cycle?

The question at hand was if the conventional 4-year cycle, primarily influenced by the halving events, might be nearing its end. Edwards posits that as Bitcoin evolves and becomes more intertwined with traditional financial structures, the influence of the halving on market patterns could lessen.

He pointed out that as Bitcoin’s inflation rate falls and it becomes increasingly intertwined with conventional finance, the significant price drops occurring every four years (halving cycles) may have less of an impact. He suggested that the severe 80% price drops experienced in previous cycles might not recur in future ones.

The developmental stage might bring about consistent expansion trends and less fluctuation. Edwards proposes that upcoming market fluctuations might feature milder downturns, potentially amounting to approximately 60%, as opposed to the steep drops experienced in past years.

It’s worth noting that there are several possible factors that might drive Bitcoin’s price to unseen heights. One such scenario was suggested by Edwards, who proposed the idea of the U.S. government creating a Strategic Bitcoin Reserve during President-elect Donald Trump’s term.

If he predicts that there’s about a 30% chance of this happening in 2025, he admits that if it does occur, it will likely have a significant impact or transform the situation. He commented, “If [the U.S. government] doesn’t sell their current Bitcoin holdings, that’s excellent, but it probably won’t greatly influence the trend. On the other hand, actively purchasing Bitcoin could potentially revolutionize things.

“Another important factor is the acceptance of corporations. If major companies decide to include Bitcoin in their assets, it could lead to a significant increase in demand. Edwards emphasized that Microsoft will soon vote on this issue, remarking, ‘Here’s hoping it’s Microsoft [on December 10].’

Additionally, the thriving success of Bitcoin-based Exchange-Traded Funds (ETFs) has provided a gateway for institutional investors. The persistent demand from these ETFs has gradually soaked up the supply of Bitcoin. Edwards remarked, “The ETFs have been voraciously draining Bitcoin from the system.

Bitcoin Price Predictions

Edward’s analysis presents a foundation and a hopeful prediction for the value of Bitcoin within this cycle. He expressed, “It wouldn’t astonish me if we reach $140,000,” which is based on average market conditions with no major unexpected favorable incidents occurring.

In a more positive outlook, he predicts that Bitcoin might surge up to $200,000, particularly if there is substantial endorsement from governments or corporations. He stated, “Reaching $200,000 could be quite simple. Once we surpass the previous records, Bitcoin tends to multiply rapidly.

He determined: “When Bitcoin surpasses $100,000, those not invested in Bitcoin find it hard to grasp its value at that level… That’s when we witness a significant shift in perception, and the major transfers of funds occur.

At press time, BTC traded at $94,814.

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2024-12-04 03:41