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Deep Value Situation in Crypto Sets Great Opportunity for Long-Term Investors

• Charles Edwards of Capriole Investments shared his Bitcoin theses for 2023, noting that almost every sentiment metric imaginable fell into the „biggest or second-biggest bearish“ range in macro, equities, and crypto.
• The housing market is slowing, which often leads the overall economy, and many key tech companies have made cuts.
• Edwards noted that every time inflation peaked above 5% and then fell by more than 20%, the U.S. central bank pivoted, creating a high probability of the Fed stopping rate hikes or reductions.

Charles Edwards of Capriole Investments recently shared his Bitcoin theses for 2023, giving insight into the current market climate and the potential for long-term investors. Edwards acknowledged the risk of a recession, noting that almost every sentiment metric imaginable fell into the “biggest or second-biggest bearish” range in macro, equities, and crypto. He went on to point out that the housing market, which often leads the overall economy, has been slowing, and many key tech names have been laying off employees.

Edwards also discussed an interesting fact about the U.S. central bank, noting that every time inflation peaked above 5% and then fell by more than 20%, the Fed pivoted. This observation holds true for the last 60 years, and Edwards suggested that there is a high probability the Fed will stop raising rates or reducing them. Ultimately, this “deep value situation” in crypto sets a great opportunity for long-term investors.

Ultimately, Edwards’ comments suggest that the market is in a position where Bitcoin offers a great position for long-term investors. The risk of recession is still present, but many key metrics have come back quite a bit, and the potential for the Fed to halt rate hikes or reductions could create an even more favorable investment climate. As a result, investors should look at this as an opportunity to capitalize on the current market situation.