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Analyst and founder of the Capriole Investment fund Charles Edwards has published an X/Twitter post to share three possible scenarios he expects to happen to Bitcoin now that the much-anticipated halving event took place over the weekend.
Bitcoin miner price spikes
In his tweet, Edwards announced that the electrical cost of Bitcoin has increased to a massive $77,400 after that Saturday halving. He clarified that this is the cost of raw electricity to power the Bitcoin network per each new BTC coin produced by miners.
However, he also proudly noticed that due to the halving, the overall Bitcoin miner price has skyrocketed to $244,000 now. This tremendous figure includes block rewards and fees per each Bitcoin mined. Bitcoin transaction fees have soared to more than $230 now, Edwards stated, indicating a 4x surge compared to the $68 historic peak that was established in 2021.
Welcome to a new paradigm.
— Charles Edwards (@caprioleio) April 22, 2024
Bitcoin Electrical Cost is now a whopping $77.4K.
This is the raw electricity cost to power the network, per Bitcoin mined.
Bitcoin Miner Price hit $244K on Saturday!
This is the block reward + fees per Bitcoin mined. It boomed as transaction fees hit… pic.twitter.com/woF6utozmZ
He concluded that the world’s flagship cryptocurrency is “trading at a deep discount” right now, adding that “Price under Electrical Cost typically lasts just a couple days every 4 years.”
Three likely scenarios for Bitcoin now, per Edwards; Bitcoin to top $100,000
Edwards now believes there are three scenarios that may happen to Bitcoin. The first one is that the BTC price will skyrocket. The second scenario assumes that approximately 15% of Bitcoin miners will shut off their gear and quit the business. The third one is that transaction fees will stay at a much higher level than average.
The expert says he personally expects “a bit of all three” to happen. He finished his tweet with a bullish forecast, saying: “Bitcoin's days under $100K are numbered.”
In the meantime, founder of MicroStrategy and Bitcoiner Michael Saylor also made an important Bitcoin price announcement over the weekend. He reminded the community that on the day of the previous BTC halving, the primary cryptocurrency traded at $8,618 and the price soared 800% by the most recent halving.
Saylor’s tweet can be interpreted as an expectation of at least a similar rise. Eight times from today’s Bitcoin price would constitute roughly $528,300 per Bitcoin since, at the time of this writing, it is changing hands slightly above $66,000. Bitcoin halvings create a “quantitative hardening,” according to influencer Samson Mow.