Bitcoin Price Hinges on US Policy and Institutional Demand: Analyst

Bitcoin's recent recovery from the $5 billion short squeeze has many optimistic about its future price. However, Charles Edwards, founder of Capriole Investments, believes that the next big move for BTC will depend on U.S. policy and institutional demand. Edwards remains positioned long but sees $70,000 as a critical level for Bitcoin to protect before the bullish outlook can continue.

According to Edwards, Bitcoin has already broken above two important levels: $65,000 and $70,000. Staying above $70,000 would keep the market looking bullish, while $71,000 is the next key level to confirm a stronger trend. The bigger support is around $60,000, so falling below $70,000 could weaken the current setup.

Meanwhile, institutional buying is adding more support, with institutions reportedly buying around 160% of the Bitcoin produced by miners each day, mainly through spot ETFs. Edwards expects at least one more rate hike this year from the Federal Reserve, but notes that this view may change depending on inflation, oil prices, and the Iran conflict.

Edwards sees Bitcoin moving toward the $90,000 range and possibly around $100,000, but does not expect a clear new all-time high without a fresh catalyst. He believes that progress on quantum protection could lift prices because it would remove a major long-term concern.