According to Charles Edwards of Capriole Investments, Bitcoin is poised for a substantial price increase in approximately three months. Despite recent disappointments, including a notable crash on August 5, there are indicators that a shift is on the horizon.
Over the past few months, Bitcoin's performance has left many investors yearning for higher prices. Following the sharp decline, gold has begun to rise, creating a contrasting picture. Bitcoin, often touted as "digital gold," may take some time to follow suit. Edwards suggests that we might have to wait around three months for Bitcoin to register significant gains.
In a recent post on X (formerly Twitter), Edwards presented a graph comparing the price movements of BTC and gold since late 2019. His analysis showed that when gold enters a new upward trend, Bitcoin typically requires time before it mirrors that movement. By overlaying the XAU/USD chart with BTC/USD, he concluded that there is approximately a three-month lag for Bitcoin.
“Overall, Bitcoin's macroeconomic trends are often delayed by several months compared to gold,” commented Edwards, who added that Bitcoin’s outlook remains promising.
Another Significant Analysis
William Clemente, co-founder of the cryptocurrency research firm Reflexivity, also drew attention to an important graph that highlights gold's performance following the introduction of commodity ETFs in 2004. Gold began to experience a significant price surge approximately 12 months after these funds launched.
If Bitcoin follows a similar trajectory, it could align with other indicators forecasting positive developments in 2025.
In fact, the Federal Reserve is anticipated to start cutting interest rates as early as September 18, which could catalyze growth across nearly all markets. Tomorrow, the U.S. will release new inflation data, and if it confirms a decrease in inflation, combined with recent unemployment figures, it could provide the final impetus for the Fed to initiate rate cuts.
Currently, Bitcoin (BTC) is trading at approximately $58,900, showing no change in the past 24 hours but reflecting a 7% increase over the last week. Conversely, Ethereum (ETH) is priced at $2,626, maintaining the same price as yesterday while also witnessing a 7% weekly increase.
As we look ahead, it’s essential for investors to stay vigilant and informed about market trends and economic indicators. Although the wait for Bitcoin’s upward movement may feel extended, historical patterns indicate that a significant surge could be just around the corner. The coming months could be pivotal for both Bitcoin and the broader market landscape.
