- Bitcoin volatility is at its highest level in almost a year.
- Analysts warn that short-term price corrections could be 'violent.'
- The asset is gearing up for its 'best risk-reward period' ever, according to a hedge fund founder.
Savvy Bitcoin traders are set for a record year, but things will get worse before they get better.
Charles Edwards, founder at crypto hedge fund Capriole Investments, made that assertion in an X post on Tuesday.
He also downplayed skyrocketing volatility as “normal” ahead of halving events, which he said would likely lead to “inefficient miners” shutting down.
“However, the realities of a much lower supply growth rate [and] unlocked pent up TradFi demand will then kick-in and launch 12 months of historically the best risk-reward period for Bitcoin,” Edwards said.
He made the observation as volatility against the dollar is at its highest levels in almost a year, according to Kaiko data.
Bitcoin has fallen 15% from its $73,580 all-time high on March 14 to trade at $61,100 lows, according to CoinGecko.
The halving, estimated to hit on April 20, will slash miner rewards by half — to 3.125.
In other words, today’s 900 newly mined Bitcoin each day will drop to 450.
The reduced supply entering the market will, theoretically, be a boon for the asset’s price.
Edwards is not alone in predicting a boon for Bitcoin traders.
[The] bull market is not over,” crypto asset trading firm QCP Capital said in a market update on Wednesday. “We are in the middle of a broad liquidity rotation that will likely take BTC to new highs post-halving.
“However, the near-term correction could be violent given the amount of leverage that remains.”
Bernstein analysts estimate that Bitcoin will soar to $150,000 by mid-2025, while Skybridge Capital founder Anthony Scaramucci has said a post-halving trigger will push Bitcoin’s price into the range of $170,000 or higher in the next year and a half.
Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.
