Charles Edwards, the founder of the Capriole Fund and a popular cryptocurrency analyst, made a new post regarding the Bitcoin price.
Evaluating the halving event, which is seen as an important catalyst for Bitcoin, Charles Edwards predicted that the BTC price base would reach $ 41,200 in just five months.
At this point, the analyst stated that Bitcoin's electricity cost will double overnight after the halving, and pointed out that in the last two halvings, the electricity cost increased up to 65% and 50% of the previous values after the halving.
The analyst, who also made a prediction for the upcoming halving, stated that if the BTC electricity cost increases by up to 50% again, this means that the historical price base of Bitcoin will be $ 41,200 in just 5 months.
“By April 2024, the Electricity Cost of Bitcoin, which is the raw energy cost of Bitcoin mining, will double overnight. This is certain.
Inefficient miners will then start shutting down when the Bitcoin reward is halved.
In the last two Halvings, the Electricity Cost increased by up to 65% and 50% of pre-Halving values.
“If the cost of electricity increases by up to 50% during the last halving, this means Bitcoin's historical price floor will be $41,200 in just 5 months.”
At this point, the analyst points out that with the halving expected to occur in 2024, the rewards of Bitcoin miners will be halved, and then the supply will decrease, resulting in an increase in the price.
Additionally, Charles Edwards thinks that the decrease in rewards could positively affect the value of Bitcoin by increasing the cost of mining activities.
Bitcoin continues to trade at $38,187 at the time of writing.
*This is not investment advice.