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Bitcoin (BTC) Price Enters 'Overvalued' Zone: Charles Edwards of Capriole Investments

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Mon, 06/01/2020 - 15:04
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Vladislav Sopov
Charles Edwards, a seasoned crypto analyst and leader of the Capriole Investments digital assets fund, has shared an update on his 'Energy Value' prediction of Bitcoin
Bitcoin (BTC) Price Enters 'Overvalued' Zone: Charles Edwards of Capriole Investments
Cover image via twitter.com
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Charles Edwards, author of the Energy Value model of the Bitcoin (BTC) price, noticed an interesting moment on its chart. And it doesn't take a great analyst to figure out whether it is, in fact, bearish or bullish.

Welcome back to the bullish market

As per the chart revealed by Mr. Edwards, the current Bitcoin (BTC) price was below its 'Energy Value' for nine months in a row. It entered this territory of undervaluation before the 'Xi Spike', in late Q3, 2019.

Charles Edwards: Bitcoin (BTC) enters overvalued zone
Image via Twitter

According to this model, the Bitcoin (BTC) price overperformed its 'Energy Value' levels only in periods of prominent bullish rallies. E.g. this rule proved accurate in the 2016-2017 run as well as during the short but significant mid-2019 rally.

Also, the 'Energy Value' figures are lagging behind Bitcoin (BTC) price movements. This means that when the Bitcoin (BTC) price crosses the 'Energy Value' moving average from the bottom, the bullish rally has already gained some steam.

At press time, the Bitcoin (BTC) Energy Value is sitting at $11,111 while its SMA level is at $9,098. The Bitcoin (BTC) price is eyeing $9,600 on major spot exchanges.

$100,000 for Bitcoin (BTC), but be patient

The 'Energy Value' model of the Bitcoin (BTC) price is a unique six-digit prediction based not on the sentiment of a toxic Bitcoin (BTC) maximalist but on sophisticated calculations. As previously reported by U.Today, Charles Edward studied the energy fundamentals of the Bitcoin (BTC) network to explain its price movements.

This prediction says we should get prepared for a $100,000 Bitcoin (BTC) price by the year 2025 or 2026.

It is worth noting that Mr. Edward masterfully described the nature of the correlation between crypto and stock prices in periods of high market volatility.

According to his estimations,

When markets are in Extreme Greed: investors are attracted to risky assets and Bitcoin performance correlates with equities, or when markets are in Extreme Fear: investors dump risky assets and Bitcoin performance correlates with equities.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

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Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
Cover image via stock.adobe.com
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Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)