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Tether Co-founder Envisions Bitcoin Reaching $300K Amidst Bull Market Surge
During a recent interview with CNBC, Tether co-founder William Quigley expressed his belief that Bitcoin has the potential to surge to $300,000 at the peak of the current bull market. Quigley based this projection on historical patterns observed in previous halvings of the popular cryptocurrency.
Quigley emphasized that his analysis should not be taken as a definitive prediction but rather as a possibility. He noted, “If you applied the historical patterns, it would suggest Bitcoin being in excess of $300,000 at the peak of this next bull market.”
The upcoming Bitcoin halving, scheduled around April 18, is expected to halve the mining reward from 6.25 BTC to 3.125 BTC. This reduction will lead to a daily supply decrease from 900 BTC to 450 BTC.
Improved Fundamentals
Quigley pointed out that Bitcoin currently boasts stronger fundamentals compared to the period prior to the last halving in May 2020. He highlighted the introduction of spot Bitcoin exchange-traded funds (ETFs) and a surge in derivative volume as key factors shaping the current market landscape.
The ETFs have garnered significant interest and recently surpassed $50 billion in assets under management. Collectively, these 10 ETFs hold approximately 740,000 BTC as of March 6.
The outstanding performance of these ETFs has been instrumental in propelling Bitcoin’s price close to its previous all-time highs well before the halving event, marking a unique occurrence in Bitcoin’s history.
Quigley noted a shift in the market composition, with a notable influx of institutional capital alongside traditional retail participants showing interest in Bitcoin. This shift contrasts with the predominantly retail-driven market prevalent before 2020.
Sentiment-Driven Market Dynamics
Quigley attributed the evolving sentiment around Bitcoin to its inherent volatility and its status as a sentiment-driven, globally traded asset devoid of traditional financial metrics such as company earnings or price-to-earnings ratios.
He remarked, “Bitcoin is maybe the only globally traded asset whose demand is purely based on sentiment.” According to Quigley, sentiment-driven investments carry immense potential and could potentially ignite an extraordinary rally, potentially becoming the largest witnessed thus far.
As the halving approaches, Quigley anticipates that Bitcoin will maintain its historical pattern of significant post-event price surges. He also suggested that other digital assets like Ethereum and Solana could rise alongside Bitcoin, potentially yielding even greater returns due to their comparatively smaller market capitalizations.
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