 ▲ Bitcoin (BTC) |
Bitcoin (BTC) has entered a key value zone that institutions are seeking to preempt, consolidating energy for a long-term upward move.
According to cryptocurrency-focused media outlet BeInCrypto on March 13 (local time), Charles Edwards, founder of Capriole Investments, stated that Bitcoin remains in a value zone and that its current price is much closer to the bottom than to the peak. Edwards emphasized that rather than trying to pinpoint the market’s exact bottom, investors should focus on the opportunities presented within the current value zone.
Based on a production cost metric calculated from miners’ mining expenses, Edwards identified the $50,000 to $60,000 range as both a support level and a core value zone for Bitcoin. While noting that Bitcoin is currently in a deep value area, he analyzed that an immediate price surge is unlikely, suggesting that from a long-term perspective the current price range represents an attractive buying opportunity.
Changes in institutional flows have also been observed. Edwards explained that institutional investors have recently shifted back to net buying, a signal that in the past coincided with an average 109% rise in Bitcoin’s price. Although net buying ratios fell as low as -319% late last year due to capital outflows, the imbalance is rapidly easing this year as inflows into spot Bitcoin ETFs and accumulation by major corporations continue.
The advancement of quantum computing has emerged as a significant variable in evaluating Bitcoin’s value. Edwards noted that, taking into account the potential threat of upcoming quantum technologies, he currently applies a roughly 20% discount to Bitcoin’s fair value. He added that unless Bitcoin core developers implement upgrades to quantum-resistant code, the discount rate could increase annually.
Bitcoin is also attempting to strengthen its identity as an independent asset class, with its correlation to gold breaking down. Edwards projected that around 200 Bitcoin-holding companies in the market may undergo consolidation in the future, potentially reshaping the competitive landscape. Rather than reacting to short-term volatility, investors should maintain a strategy focused on institutional capital flows within the value zone and the direction of technological upgrades.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses arising from it. The content should be interpreted solely for informational purposes.