Charles Edwards, the founder of Capriole Fund and a crypto analyst, offers an intriguing perspective on the price of Bitcoin (BTC).
According to Edwards, in only five months, the historic low price of Bitcoin will rise to $41,200. This conclusion is based on his belief that the cost of mining Bitcoin would double over night, most likely in April 2024, and that this cost is mostly related to electricity.
The creator of Capriole Fund thinks that when the Bitcoin incentive drops, inefficient miners could start to stop down as a result of this certainty.
Today marks eleven years since the first Bitcoin halving. The next halving is anticipated to occur in April 2024. Previous ones occurred in 2016 and 2020.
Edwards claims that in the past two halvings, the electricity cost bottomed out at +65% and +50% of pre-halving levels, respectively. Edwards projects that in only five months, Bitcoin will reach its historic price floor of $41,200 if this occurs once more and the electricity cost bottoms out at +50%.
The halving event, which happens every 210,000 blocks and reduces the pace of new currency production by 50%, is one of the most eagerly awaited events on the Bitcoin calendar. The next Bitcoin halving is scheduled to occur at a block height of 840,000, although the precise day and time are not yet known.
Glassnode, an on-chain analytics start-up, predicts a likely date of April 23, 2024 based on the current average block interval.
This event is expected to exceed expectations, which is good news for both parties involved. After the halving event, Bitcoin had an incredible annual return profile of over 400% in previous cycles. But previous performance does not guarantee future performance.
As of this writing, Bitcoin (BTC) was up 0.35% to $37,191.