Capriole Founder Not Bearish On Bitcoin Despite Headwinds—Here’s Why
Overview
The founder of Capriole Investments, Charles Edwards, expresses a bullish stance on Bitcoin, despite facing market headwinds. He cites two key indicators that suggest a positive outlook for the cryptocurrency, challenging the prevailing bearish sentiment.
Key Indicators
Bitcoin Heater
In a recent post, Edwards highlighted Capriole’s “Heater” metric, which analyzes the derivatives market, including perpetual swaps, futures, and options. This indicator reflects the level of bullish positioning among investors. A high value indicates significant leverage and bullish sentiment, while a recent plunge in this metric suggests a cooling of sentiment amid a price drop. Currently, the Heater is positioned within a historically favorable green zone, which has previously signaled local bottom formations for Bitcoin.
Dynamic Range NVT
Another indicator mentioned is the Dynamic Range NVT (Network Value to Transactions) Ratio, which assesses the relationship between Bitcoin’s market cap and its transaction volume. A high NVT value indicates a potentially inflated market cap relative to transaction activity, while a low value suggests the cryptocurrency may be undervalued. The recent decline of the NVT Ratio below its lower band indicates a potential undervaluation of Bitcoin, similar to signals seen during previous bearish periods.
Conclusion
Despite the challenges, including institutional selling, Edwards remains optimistic about Bitcoin’s prospects, emphasizing the favorable indicators currently in play.
Impact on the crypto market
- The bullish indicators may influence investor sentiment positively.
- A potential undervaluation could attract new investments into Bitcoin.
- The market may see increased trading activity in derivatives as sentiment shifts.
- The historical context provided by the Heater and NVT may guide future market movements.
- The outlook may bolster confidence among long-term Bitcoin holders.
Updated: 11/26/2025, 7:22:32 AM
