Despite bitcoin recently surging past $122,000, Charles Edwards, founder and CEO of digital assets hedge fund Capriole Investment, believes the digital asset’s rally is only in its early innings, according to a report by NewsBTC.
In his latest market commentary, Edwards calls this the start of a “bitcoin liquidity supercycle” – driven not by short-term speculation, but by powerful macroeconomic tailwinds and structural adoption.
According to Edwards, global liquidity conditions, weakening USD positioning, narrowing credit spreads, and growing risk appetite in equities are aligning to support a sustained uptrend in Bitcoin. Capriole’s proprietary Bitcoin Macro Index – a composite of market, on-chain, and macro signals—remains firmly in growth territory despite BTC’s recent vertical moves.
One key driver is the rise of Bitcoin Treasury Companies (TCs) – corporate entities raising fiat through capital markets to buy spot BTC. Edwards notes these firms brought in $15bn in Q2 alone and now number over 145 globally. Their reflexive buying, fuelled by rising valuations and follow-on fundraising, could add over $1tn to bitcoin’s market cap in the next year, he argues.
Capriole’s thesis also highlights bitcoin’s growing alignment with traditional financial markets. Risk-on signals in BBB credit and equities mirror bitcoin’s movements, and a historical lag behind gold suggests further upside, with teh currency behaving like a macro asset,
While acknowledging volatility and potential pullbacks, Edwards maintains that the macro setup is clear: ample liquidity, muted credit stress, a crowded dollar short, and a structurally new buyer base point to the early stages of a long-term capital influx.
