Charles Edwards, the founder of the Capriole Fund and a prominent cryptocurrency analyst, recently shared insights on the future of Bitcoin’s price.
In his analysis of the upcoming halving event, recognized as a pivotal factor for Bitcoin, Edwards projected a BTC price baseline of $41,200 within the next five months.
Highlighting the impact of the halving on Bitcoin’s electricity cost, Edwards noted that after the event, the electricity cost of Bitcoin would double overnight. Drawing from observations of the last two halvings, he pointed out that the electricity cost surged by 65% and 50% of the pre-halving values in those instances.
Looking forward to the upcoming halving, Edwards predicted that if the electricity cost of BTC increases by up to 50% once again, the historical price baseline for Bitcoin could hit $41,200 in just five months.
He stated, “By April 2024, the Electricity Cost of Bitcoin, which is the raw energy cost of Bitcoin mining, will double overnight. This is certain. Inefficient miners will then start shutting down when the Bitcoin reward is halved. In the last two Halvings, the Electricity Cost increased by up to 65% and 50% of pre-Halving values. If the cost of electricity increases by up to 50% during the last halving, this means Bitcoin’s historical price floor will be $41,200 in just 5 months.”
Edwards emphasized that with the 2024 halving approaching, the reduction in Bitcoin miner rewards would lead to a decrease in supply, potentially driving an increase in the cryptocurrency’s price. Furthermore, he suggested that this reduction in rewards might positively impact Bitcoin’s value by elevating the cost of mining activities.
As of the current writing, Bitcoin is trading at $38,187.