Bitcoin (BTC) Meets Black Swan Undervalued But Can Close 2020 at $6,400: Analyst

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Wed, 03/11/2020 - 14:15
Vladislav Sopov
Charlie Edwards, digital assets manager and head of Capriole Investments, analyzed Bitcoin's (BTC) behavior in roaring 2020. Does it behave similarly to stocks and fiat?
Cover image via www.shutterstock.com
Contents

In the second part of his longread, Mr. Edwards studied every aspect of Bitcoin (BTC) trading in times of fear, greed, and recession. He also shared his views on the mid-term and long-term perspectives of the flagship blockchain.

Fear, greed and market correlations

Mr. Edwards is sure that the Bitcoin (BTC) price correlates with classic asset prices only in times of great fear and greed. According to him, neither gold nor stocks have shown sustained correlation with Bitcoin (BTC).

The analyst designed the following rules that explain the relationship between classic and digital assets. He says that they are correlated with each other only

When markets are in Extreme Greed: investors are attracted to risky assets and Bitcoin performance correlates with equities, or when markets are in Extreme Fear: investors dump risky assets and Bitcoin performance correlates with equities.

With that said, we finally can blame coronavirus for the crypto market recession.

$100,000 remains a target?

Despite the very sensitive 'Miner Stress' caused by the upcoming third halving and unprofitable operations on the most widespread mining rigs, Mr. Edwards is macro-bullish on the Bitcoin (BTC) price. He believes this asset is greatly undervalued so, within 5 years after crisis adoption, it may reach the $100,000 level.

But the mid-term forecasts are less optimistic. Mr. Edwards predicts a very tough halving for miners. When it takes place, all eyes will be on the coronavirus. Should its fear and recessionary risk subside in Q3-Q4, 2020, the old scenarios by Mr. Edwards will play out: Bitcoin (BTC) between $8,000 and $17,000. Otherwise, the price may dip below $6,400.

Related
Bitcoin (BTC) to Reach $100,000 in 5 Years: Energy Value Forecast by Charles Edwards

As U.Today previously reported, Charles Edwards published a brilliant paper on the 'energy value' of Bitcoin (BTC) which will cause it to skyrocket to $100,000 in five years.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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