The Bitcoin network will halve in April. Many people believe that this will be the trigger for strong growth. Charles Edwards, founder of the hedge fund Capriole Investments, thinksthat in this cycle you will have to pay as much as USD 280,000 for 1 BTC.
Bitcoin price around USD 300,000?
Edwards is optimistic, but also points out that 2020-2021 was the worst bull market in bitcoin history. There were increases, but not as great as many expected. Why? According to Capriole's founder, this was the result of China's anti-Bitcoin policy and the subsequent aggressive cycle of tightening the Fed's monetary policy.
Except now the situation is different. Hong Kong is starting to liberalize its policy towards cryptocurrencies, which may become a gateway to the market for Chinese citizens. Additionally, the Fed is going to start cutting interest rates. From the Fed's reports, it can be concluded that the Federal Reserve authorities will make three interest rate cuts this year. This will weaken the dollar and strengthen BTC.
Moreover, Edwards also highlighted the recent launch of spot bitcoin ETFs, likening their impact to an additional “second halving.”
He also pointed to what happened after the introduction of gold ETFs to the market in 2004. The price of the precious metal increased significantly. Bitcoin with its smaller supply may increase in price even more.
Adoption will enhance growth
The rapid pace of implementation of blockchain technology into the real economy will further boost growth, Edwards points out. He assured that Bitcoin's growth trajectory (as a network) has already exceeded even that of the Internet.
So what is the final conclusion of the Capriole founder? In his opinion, the bitcoin price will reach USD 280,000 this cycle.