Capriole's Charles Edwards Sees Bullish Outlook for Bitcoin (BTC) Driven by Improving Macro Conditions and the Impact of Spot ETFs

In an interview on the Blockworks Macro podcast, Edwards highlighted that the market is at "the exact opposite point" of November 2021, when the Fed began aggressive rate hikes.

Founder of Capriole Investments, Charles Edwards, anticipates a bullish outlook for Bitcoin BTC/USD, fueled by improving macro conditions and the impact of spot ETFs.

Edwards highlighted the market being at "the exact opposite point" of November 2021, when the Fed began aggressive rate hikes, during an interview on the Blockworks Macro podcast.

Several bullish indicators were mentioned by Edwards, including Bitcoin’s strong correlation with measures of U.S. liquidity and gold's recent breakout to new highs. “Bitcoin tends to lag gold by a few months,” he said, indicating that Bitcoin could follow gold's upward trend.

Despite Bitcoin's recent underperformance, Edwards attributes this to idiosyncratic factors such as Mt. Gox-related selling pressure, which he believes are largely over. He will be closely monitoring Fed policy shifts and normalized on-chain metrics in the coming months for market signals. He concludes, "I think the downside is, at least in the near term, pretty capped."

At a recent appearance, Federal Reserve Chairman Jerome Powell said that future interest rate cuts would depend on economic data.

He went on to say that the inflation is on a sustainable path back to 2%, and the recent 50-basis point rate cut shows growing confidence in the goal. Regarding any future rate cuts, he said it can happen slower or faster depending on how the economy moves and reacts.

Also Read: Bitcoin Halving Cycle Signals Potential 2024 Rally, Canaccord Analysts Predict

Edwards remains optimistic about spot Bitcoin ETFs, comparing their potential impact to gold ETFs launched in 2004. However, he cautions that on-chain metrics have become less reliable due to the shift of Bitcoin into ETFs, stating: "I now think that’s not really so relevant because of what I’m about to talk about with ETFs."

Recent statistics show massive inflows of $20.9 billion into iShares Bitcoin Trust IBIT this year, which is 98.63% of its Assets under management.

Edwards anticipates that central banks will begin to hold Bitcoin alongside gold within 5-10 years. He adds, "The way that central banks hold gold today, they will at least be holding some Bitcoin."

The influence of Bitcoin as an institutional asset class will be a key topic at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

The above is the detailed content of Capriole's Charles Edwards Sees Bullish Outlook for Bitcoin (BTC) Driven by Improving Macro Conditions and the Impact of Spot ETFs. For more information, please follow other related articles on the PHP Chinese website!