NewsBTCMar 13, 12:00 PM
Charles Edwards Says Bitcoin Is In A Value Zone, But Not Yet At Deep Value
Capriole Investments founder Charles Edwards says Bitcoin has moved into a historically attractive accumulation area, but not yet the kind of deep-discount zone that defined the best buying opportunities of prior cycles. In his view, the setup is constructive for long-term holders, though still lacking the confirmation needed to call a durable bottom. Speaking with Crypto Consulting Institute’s Joe Shew, Edwards framed Bitcoin as “closer to the bottom than the top,” with multiple on-chain metrics pointing to value even as price action remains damaged. He stopped short, however, of calling the current range a standout opportunity. “Bitcoin I think you could summarize in a few words as it’s close to the bottom than the top,” Edwards said. “Broadly trending within a value range historically in terms of onchain data and metrics. That said, it’s not at the deep value range that would be really exciting for me that we’ve seen in prior cycles.” That distinction matters. Edwards said Capriole still holds a small net long Bitcoin position, but the levels that would make him “super excited” sit lower, around the production-cost band between roughly $50,000 and $60,000, with the low-to-mid $50,000s standing out as particularly attractive. Historically, he said, Bitcoin has spent months in that zone during major cycle lows. Related Reading: Bitcoin Bull Score Surges To 30, Exits ‘Extra Bearish’ Zone For investors with a multi-year horizon, Edwards argued that some exposure still makes sense. But he cautioned that value alone is not enough. “As with any asset, equities, anything, you can be in a value zone for a long time,” he said. What is missing, in his telling, is a convincing signal of renewed strength through either a deeper capitulation, a technical breakout, or more durable evidence of demand. Bitcoin Institutional Flows Improving, But Not Decisive One of the clearest positives in Edwards’ framework is institutional buying. He described net purchases from U.S. spot ETFs and roughly 200 treasury companies as one of the most important Bitcoin metrics today, especially when those inflows exceed daily mined supply. “If it’s net positive, especially if it’s above the amount of Bitcoin it’s mined per day, so it’s greater than the organic supply, then that is really positive,” he said. “We’ve seen all the major price appreciation when that’s net positive.” Still, he noted that most of those buyers remain underwater. According to Edwards, about 80% of ETFs and treasury vehicles are currently below cost basis, reinforcing what he called “typical bear market vibes.” A more meaningful signal, he said, would be strong flows holding for a week or two while Bitcoin stays above the $70,000 area, with a weekly close above roughly $71,500 acting as a line in the sand for a more bullish short-term outlook. Related Reading: Bitcoin May Still Fall Under $10,000, Bloomberg’s McGlone Warns Even then, he warned that a rally into the mid-$70,000s or low $80,000s would not ne