Charles Edwards, founder of Capriole Fund and experienced crypto analyst, made a remarkable prediction about Bitcoin’s future price performance. Edwards claimed that Bitcoin’s base price could reach $41,200 in just five months. He based this conclusion on the cost of electricity spent mining Bitcoin. Here are the details…
Edwards’ conclusion is based on the key cost elements in Bitcoin mining. focuses. According to his analysis, the cost of electricity spent on Bitcoin mining will increase significantly with a halving event expected to occur in April 2024. Based on past halving events, Edwards suggests that the cost of electricity could increase by 50% this time.
Based on historical data, Edwards observed that Bitcoin’s electricity cost had increased by +65% and +50% respectively before the last two halvings. If this trend continues, Edwards predicts that Bitcoin’s historical bottom price could be $41,200, with the cost of electricity rising by 50% this time.
Halving events occur when Bitcoin miners’ rewards are halved, which usually results in a decrease in supply and an increase in price. Edwards points out that this decrease could positively affect the value of Bitcoin by increasing the cost of mining activities.
The next Bitcoin halving is set for block height 840,000; However, the actual date and time are unknown. Based on the current average block range, GlassNode announced that April 23, 2024 is a possible date for the halving.
Expectations for this event, which will have positive results both before and after, are increasing. In previous cycles, Bitcoin delivered an incredible annual return of over 400% following the halving event. However, it is important to emphasize that due to the volatility of the cryptocurrency market and the influence of many variables, such predictions are not precise and it is difficult to predict future price movements. Edwards’ analysis offers a perspective to evaluate and understand potential developments in the cryptocurrency market, but investors should always exercise caution and conduct a thorough risk assessment.
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