The $20,000 level is no longer supportive.
A price tag of $100,000 never materialized.
The next Bitcoin halving will happen within of 562 days.
The bears simply refuse to give up their market advantage and the Fed’s policy of raising interest rates and quantitative tightening is adding fuel to the fire.
Despite these adversities, in a Twitter space hosted by Cointelegraph on September 15Capriole Fund founder Charles Edwards explained why he remains bullish on Bitcoin.
Edwards said that several on-chain metrics suggest that BTC is undervalued:
“I see an incredible investment in value and I call it a trifecta and that we have three positive things happening in my mind. One is the moment of the cycle, between years two and three, which has historically been where all Bitcoin cycles have bottomed Second is we’ve hit 90% of the normal cycle dips Now obviously all of these things can continue to drop but that alone is a good sign of value And then third just the readings across pretty much every on-chain metric, whether it’s Mayer’s Multiple, Puell’s Multiple, or NVT or Idle, it’s all kind of at a four-year discount. So for me, it’s kind of a one-cycle opportunity what we see right now.”
When asked about his thoughts on the previous Bitcoin halving and how the current economic environment might affect the next halving, Edwards said:
“I think it was a success because it put Bitcoin as one of the strongest assets in the world in the middle of printing money that has never been seen before. And we saw a lot of old school traditional finance, legendary investors, Druckenmiller, etc. invest. in Bitcoin because it’s kind of a hedge more or less. And that triggered the next 6-12 months to the upside. I also think the crypto industry still runs on the Bitcoin halving cycle. For now. I don’t think to continue forever but for now I think it still has weight and impact on how people invest in the space With each subsequent halving the incremental value of falling inflation for Bitcoin is negligible because it is already -save for Ethereum – currently the solid asset, or stronger than gold”.
The year 2022 has shown that risk management and building a balanced portfolio is still a skill set that crypto investors are working to develop. Edwards said:
“Whatever your method, whatever way you trade or invest, whether or not you use stop losses as a strategy. You have to do a detailed model on as much data as you can and not just two years of data, because that’s how entities have blown up in the past. Do as much as you can, like 10 years of Bitcoin at least, and assume the worst and then again add a buffer element below that to manage your position size.”
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