Crypto analyst and founder of Capriole Funds Carlos Edwards predicts the possibility of a 500% price return for Bitcoin (BTC) if a bullish halving pattern develops.
Crypto analyst and founder of Capriole Funds Carlos Edwards predicts the possibility of a 500% price return for Bitcoin (BTC) if a bullish halving pattern develops.
According to Edwards, if Bitcoin’s post-halving returns remain consistent with 2020, the cryptocurrency can reach $280,000 in 2025.
While it is feasible to argue that this cycle’s returns are lower, Edwards believes that the 2020 cycle’s performance was mediocre and atypical.
The founder of Capriole Funds declared that 2020 was the worst Bitcoin bull market in history. He links Bitcoin’s underperformance to China’s destruction of 50% of the mining network and the Fed’s most aggressive tightening cycle in history. Edwards noted that these were two massive, stagnant forces in Bitcoin, the magnitudes of which are highly unlikely to be seen again in the next two years.
Edwards said 2024 would be the polar opposite of 2021. The Federal Reserve has begun to ease its monetary policy and its chairman, Jerome Powell, predicted three cuts this year. In resolution of it, a weaker dollar could imply a stronger Bitcoin.
Bitcoin Halving and ETF Could Contribute to 800% Rise for Bitcoin
Edwards believes the launch of the Bitcoin ETF in January is as powerful as a “second halving,” referring to Gold’s example. As an example, he stated that when the gold ETF was created in 2004, the market cap of gold was four times larger than that of Bitcoin today.
With a market capitalization of approximately $3.3 trillion, gold has seen a parabolic rise of more than 300% to $13 trillion in less than seven years.
Bitcoin’s market cap today is just over $800 billion. Smaller assets are typically able to enjoy greater upside returns; Edwards explains his proposition about Bitcoin’s huge price rise. He also noted that all major technological advances of the last century have witnessed progressively faster adoption rates.
With this in mind, Edwards expects a 300% appreciation in Bitcoin price over the next two to five years, driven solely by ETFs, to be conservative for Bitcoin. Additionally, a 500% return over the 18 months following the halving would not be unusual historically for Bitcoin. Ultimately, this adds to the goal of an 800% increase.
The crypto researcher concludes that based on the two most important factors for Bitcoin in this cycle, the Bitcoin ETF and the halving, a conservative Bitcoin price of $300,000 could be reached in the coming years.
However, this remains speculation as many things can happen between now and then that will cause these numbers to go up or down. Other data may become more relevant at other times, making it vital to do your research and be well informed before making important decisions.
