Analyst and founder of the Capriole Investments fund Charles Edwards said multiple on-chain metrics suggest that Bitcoin and other cryptocurrencies have “a lot further to run” in this bull market.
In his latest newsletter, Edwards explained that transaction fees from the recent Runes launch and other long-term metrics after the Bitcoin halving suggest “higher baseline Bitcoin (BTC) prices.
“Bitcoin now harder than gold”
Bitcoin’s fourth halving resulted in a 50% drop in the digital asset’s supply growth rate, surpassing gold in terms of inflation rate.
Edwards said long periods of continuous currency debasement and high inflation rates place Bitcoin at the forefront of “global fungible assets” for long-term wealth preservation.
“Gold’s inflation rate went up +50% in 2023 to 3% p.a. That makes Bitcoin’s inflation rate less than one-quarter of gold’s. Bitcoin is now the hardest store of value.”Bitcoin vs. gold inflation rate. Source: TradingView
Market intelligence firm Glassnode reached a similar conclusion, saying that the halving resulted in Bitcoin decisively surpassing gold in terms of issuance scarcity.
Glassnode analysts said:
“The fourth halving also marks a significant milestone in the comparison of Bitcoin to Gold as for the first time in history, Bitcoin’s steady-state issuance rate (0.83%) becomes lower than gold (~2.3%), marking a historic handover in the title of scarcest asset.”
Meanwhile, American entrepreneur and former CEO of cryptocurrency exchange BitMEX Arthur Hayes said governments of the world will continue printing money to offset their debts, and their currencies will lose out against Bitcoin.
This makes Bitcoin the “hardest money ever created.”
Related: Price analysis 4/24: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
History rhymes but it may not repeat itself
Many analysts have voiced their opinions on the implications of the Bitcoin halving on BTC price. Edwards now believes three things are likely to happen to the BTC post-halving.
The first scenario assumes that the BTC price will skyrocket. The second assumes that approximately 15% of Bitcoin…
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