Bitcoin 70% Surge Not Enough To Erase “Historic Undervaluation,” Says Crypto Analyst

Charles Edwards authored the latest issue of the Capriole Newsletter. Traditional finance instability’s effect on Bitcoin &  crypto market analyzed. Digital asset management firm Capriole Investments publish the newsletter.

Newsletter #30, out today, discusses the collapse of 3 U.S. banks, Credit Suisse’s challenges, the Fed’s Q.E. U.S. policies, as well as their extensive effects. Regulators crack down on crypto firms, citing the fragility of traditional banking after three U.S. banks failed.

The newsletter calls for decentralized alternatives like Bitcoin. Edwards analyzes Bitcoin’s potential performance amidst economic changes like bank failures and de-dollarization. Edwards also studies investors’ interest in Bitcoin.

Furthermnore, Fidelity Crypto launched, and Microsoft tested a crypto wallet, highlighting positive industry advancements. Edwards offers insights into Bitcoin’s future amidst the changing financial and crypto landscapes.

Bitcoin has perhaps never experienced a better investment narrative in its history than it has today.

Despite the 70% rally, organic demand suggests no signs of speculation and historic undervaluation remains.https://t.co/BUf7sk4bEb

— Charles Edwards (@caprioleio) April 1, 2023

Organic spot purchasing has driven Bitcoin’s price surge, indicating a lack of speculation. This suggests that the bull cycle is still in its early stages. By analyzing metrics such as Bitcoin production cost, energy value, and macro index, Edwards comprehensively understood the current market.

According to his report, the lack of speculation in the current bull cycle implies that there is still significant market growth potential. Edwards identifies three possible liquidity crises for Bitcoin: U.S. bank runs, worldwide de-dollarization, and “Operation Choke Point 2.0” as a targeted assault on lawful crypto enterprises.

Opportunities For Investors To Profit From Market Changes

Edwards believes the current crises highlight the necessity for a new financial system, where Bitcoin can be crucial. The newsletter explains that as countries aim to lessen their dependence on the U.S. dollar, the global de-dollarization process is ongoing and could have a notable effect on Bitcoin and the wider cryptocurrency market.

The weekly examines ways for investors to profit from market developments while analysing liquidity crises and their effects on the cryptocurrency market.

The newsletter predicts global de-dollarization could increase demand for Bitcoin as a store of value and medium of exchange. This could lead to a price surge and more diversification among investors and institutions. The positive feedback loop may further amplify Bitcoin’s demand.

The newsletter says that big investors are getting more involved in Bitcoin to offset currency risks and exploit its unique qualities. Newsletter discusses crypto regulations, recent actions against businesses & their impact. Despite expected scrutiny, it maintains a positive long-term outlook for Bitcoin & crypto.

Steps for stronger infrastructure and investor trust may result. Regulating crypto firms could pose initial difficulties, yet promote transparency and safety, enhancing the industry’s durability,” asserts the report.

Related Reading | End Of An Era: Bittrex Bids Farewell To US Market Amid Regulatory Hurdles

The newsletter highlights crypto market trends: DeFi & NFTs. However, Groundbreaking innovations that showcase blockchain’s potential to transform finance are seen by many. The newsletter predicts more innovation and adoption across industries as the technology matures.