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Founder of Capriole Investments Charles Edwards has dropped a hint that Bitcoin is likely to stage a major price increase next year as one of the biggest catalysts for that is drawing closer – the Bitcoin halvening event.
Bitcoin halving is expected in April next year, and this would be the fourth BTC reward cutting event since the flagship digital currency was founded in 2008.
Staggering BTC price surge expected next year
To underpin his theory, Edwards shared a chart that shows how the Bitcoin price reacted to each of the three previous halvings. The chart shows that BTC spiked first after Genesis and then went high after each of three halvings. Every time, the price went higher than after the previous halving: it went up almost to $900 in 2013, then sprang to nearly $20,000 in 2017 and reached $69,000 in 2021 after the third halving that took place in 2020.
Edwards reckons that after BTC miner rewards get cut in half in April next year, soon after that, Bitcoin will also stage an amazing price surge.
In an X post published earlier this week, the analyst explained this process – once the halving takes place, the production cost (raw energy cost for BTC minting) for mining Bitcoin will double overnight, and inefficient miners will begin to wrap up their gear.
After the last two halvenings, Edwards said, the raw electrical cost for BTC mining bottomed at +65% and +50% of the prehalving values. If the same +50% happens this time too, Edwards predicts that the Bitcoin price will soar to $41,200 less than half a year after the event.
Another prediction made on the X post by a major Bitcoin-themed account stated that BTC is likely to come really close to the $220,000 level after the 2024 halving; after the same event three years ago, BTC surged 6x and hit $69,000 eventually. If the same happens now, then Bitcoin has good odds of hitting the aforementioned astounding price level within the next 18 months.
"Did Jeff Bezos spend $42 million with Bitcoin in mind?" Edwards wonders, here's why
Edwards added a new comment to his tweet about the Bitcoin price surge hint. He mentioned the ambitious large-scale project started by Amazon founder Jeff Bezos when he was still the company's CEO. The project costs $42 million.
In 2018, Bezos began building a gigantic clock inside a mountain. The clock is a mechanical one, and it is designed to last 10,000 years, outlasting human civilization, as Charles Edwards put it. "Did he just consider using Bitcoin?" the analyst jokingly wondered in his comment.
The clock will be 500 feet tall, and it will tick once a year (it will be have year hand rather than a second hand) when finished and launched, according to Bezos's plan. Instead of an hour hand, it will have a century hand that will move once every 100 years.
"The cuckoo comes out on the millennium. I want the cuckoo to come out every millennium for the next 10,000 years," Bezos said.