In an interview with Korean crypto researcher Juhyuk Bak, also known as @JuhyukB, Capriole Investments CEO Charles Edwards laid out a striking divergence in the crypto asset markets: while Bitcoin could double this year, altcoins remain structurally impaired and far from any meaningful rotation. Bitcoin Could Hit $200,000 This Year Speaking from the perspective of a macro quant hedge fund operator, Edwards was unequivocally bullish on Bitcoin, stating, “If the data stays in the current trend we’re in, I think $150–200K is definitely possible this year.” The founder of Capriole, a fund known for pioneering on-chain valuation models like Hash Ribbons, Energy Value, and the Macro Index, grounded this forecast in a web of interlocking technical, sentiment, and macroeconomic signals. Related Reading: Bitcoin Warning: Bull Trap Or $270,000 Rocket? Analyst Exposes What’s Coming “We’re printing new all-time highs on daily and weekly closes,” Edwards noted. “As long as we stay above $104K as long as the Macro Index trends up, and US liquidity continues to rise, this environment is very bullish.” Capriole’s proprietary Macro Index—a machine learning model aggregating over 100 inputs from Fed liquidity to bond and equity markets—has turned decisively positive. Bitcoin’s rally, Edwards emphasized, is further reinforced by metrics like MVRV Z-Score, Hodler Growth Rates, and Energy Value, all signaling room for expansion. But while Bitcoin shows strength across multiple dimensions, altcoins are telling a very different story. The Death Of The Old Altcoin Cycle Edwards refrained from naming specific altcoins but delivered a clear macro verdict: the capital flow dynamics have changed, and altcoins are no longer on an equal footing with Bitcoin. “Structurally, things are quite a bit different this cycle […] the biggest driving forces are Bitcoin ETFs and US policy. That’s creating a centralizing effect—funneling capital directly into Bitcoin,” he explained. He pointed to the historical cycles of retail-led altcoin rallies, followed by catastrophic drawdowns—often exceeding 99% losses. “Retail has just gotten destroyed,” he said bluntly. “There’s a fatigue in the altcoin space that wasn’t there four or five years ago.” Related Reading: Bitcoin Could Explode On Bessent’s $250 Billion Deregulation Shock The legacy of failed ICOs, broken tokenomics, and events like the FTX collapse have left lasting scars. Meanwhile, institutions are avoiding the risks and complexity of smaller-cap digital assets, opting instead for regulated Bitcoin exposure through ETFs and corporate treasury allocations. “It used to be more of a level playing field. That’s no longer the case,” Edwards said. “The real money is flowing into Bitcoin—and that probably continues for a while.” When Will Altcoins Wake Up? Despite the grim tone, Edwards does not dismiss altcoins entirely. He views a strong altcoin cycle as conditional—not impossible, but dependent on clear Bitcoin dominance first. Using Capriole’s Speculation Index and Crypto Breadth models, which track the relative strength and price movement of altcoins, he made a key observation: “Right now, only 5% of altcoins are above their 200-day moving average. That’s not bullish.” He compared the current setup to late 2020, when Bitcoin surged from $10K to $60K before altcoins began outperforming. That rotation required Bitcoin to first breach previous all-time highs decisively. “You want Bitcoin to hit something like $140K while alts are still underperforming. That would be the ideal setup […] that’s when capital begins rotating downstream,” he explained. Conversely, if altcoins begin pumping prematurely, while Bitcoin remains range bound, Edwards sees that as a top signal. “That’s usually the last puff of air,” he warned. Cycles Are Changing, Risks Are Evolving Beyond price action, Edwards questioned the relevance of traditional halving cycles. He argued that the impact of miners—once the primary driver of Bitcoin supply dynamics—has diminished significantly due to ETFs, corporate treasuries, and sovereign actors like Michael Saylor. “That four-year cycle is dead—or at least dramatically weaker. Miners are now just 2–3% of the total supply flow. The real drivers today are institutions,” he said. This evolution reduces the probability of 80% drawdowns and increases the risk of systemic leverage—particularly from publicly traded Bitcoin-heavy firms. While not an immediate concern, Edwards sees potential for long-term vulnerabilities if major players overextend. Edwards also discussed diversification within Capriole’s portfolio. While Bitcoin remains the firm’s core allocation, he revealed exposure to quantum computing equities like IonQ (IONQ), Rigetti (RGTI), D-Wave (QBTS), and QUBT. “I think quantum is like Bitcoin in 2015. It’s early, it’s volatile, but the long-term CAGR could be even higher than Bitcoin’s.” He added that gold also plays a strategic role, not as a replacement but as a hedge. Capriole monitors the gold-to-equity ratio closely, and its breakout above the 200-day moving average is seen as a historically bullish signal—both for gold and Bitcoin. In closing, Edwards urged investors to tune out most of the financial news cycle. “Probably 99% of headlines don’t matter,” he said. Instead, focus on game-changing shifts: Fed pivots, global liquidity expansions, and true structural reconfigurations of capital flow. “We’re wired to overreact to bad news. The key is to filter it down to a few macro drivers that actually move the market—and Bitcoin right now has those working in its favor.” Until altcoins show meaningful breadth and break their long-term resistance structures, Edwards’ message is clear: Bitcoin will soar. Altcoins won’t—at least, not yet. At press time, BTC traded at $105,557. Featured image created with DALL.E, chart from TradingView.com
