After Bitcoin (BTC) recently hit a new all-time high above $70,000, analysts and investors are looking out for the next potential milestone for the maiden cryptocurrency.
Tether pioneer William Quigley suggests the ongoing bull run could outshine all previous ones, and there is room for BTC to surge to as high as $300,000.
Bitcoin On Track For $300,000?
This current Bitcoin bull run stands out in several ways. For one, as Tether co-founder William Quigley explained in a recent interview with CNBC, the market is in “better shape” fundamentally than it was before the May halving in May 2020. He cited the shiny new spot Bitcoin exchange-traded funds (ETFs) and the high derivative volumes.
Bitcoin’s upswing in recent weeks has coincided with the accelerating inflows into the spot ETFs. Notably, these products have amassed more than $53 billion in assets under management as of March 7 since their debut in January.
Quigley noted that the upcoming block subsidy halving typically drives the price of Bitcoin higher. In his view, should history repeat itself with a successful breakout higher, BTC price will be targeting prices north of $300,000 — a 350% growth from its current price level.
“I’m not predicting this, I’m just saying if you apply historical patterns, it would suggest Bitcoin being in excess of $300,000 at the peak of this next bull market,” Quigley clarified.
Bitcoin investors have historically welcomed the quadrennial halving event, which cuts the rewards earned by miners by half. The next halving is anticipated in mid-April, a countdown clock indicates.
“Bitcoin is maybe the only globally traded asset that I know of whose demand is purely based on sentiment,” the Tether co-founder posited.
“There’s not a Bitcoin company, there’s not a Bitcoin price-to-earnings ratio, it’s just a sentiment-driven token. And what you can say about that is sentiment has no limits. You can always be more optimistic, and so this rally may be the biggest we’ve seen.”
Concerns Over BTC Price Pullback Remain
While halving is considered a bullish tailwind for BTC prices, not everyone is feeling hopeful about what the coming months hold.
Venturefounder, a contributor to blockchain analytics provider CryptoQuant, postulated that both Bitcoin and the largest altcoin, Ethereum (ETH), must make a more decisive break of current all-time highs. He referenced the impending decision over whether or not to greenlight U.S.-based spot ETH ETFs.
“If BTC and $ETH fail to make a definitive new ATH breakout in March, I think it’s more likely we see more downside in April/May leading to the halving and ETH ETF approval,” he predicted.
According to Venturefounder, “March is probably the most important month of this cycle following such bullish February month.”
Moreover, JPMorgan analysts have previously suggested in a research report that the halving will hurt miners’ profitability, given the slashed rewards and higher production expenses, which ultimately could lead to Bitcoin falling to $42,000 “once Bitcoin-halving-induced euphoria subsides after April”.
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