Co-Founder of Tether William Quigley on the Impact of Bitcoin Halving on Cryptocurrency Markets
A major event in the world of cryptocurrencies, the Bitcoin halving signifies a change for institutions, miners, and the market as a whole.
The projected occurrence of this planned event, which occurs about every four years, is set for April. It will have a direct influence on Bitcoin’s supply by halving the mining reward, which is a key component meant to maintain its value over time.
William Quigley, a venture investor and co-founder of Tether (a stablecoin issuer) and WAX.io (an NFT platform), discussed the wider implications of Bitcoin’s halving in an interview with Cryptonews.com.
Quigley went into detail on the Bitcoin halving, its effects on the cryptocurrency market, and how it affects miners and regular investors.
In his first discussion of the market’s reaction to the halving, Quigley elaborated on historical data to provide a prediction for Bitcoin’s price after the event.
In the months after the Bitcoin halving, “there is a traditionally Bitcoin prices surged,” Quigley said. As a result of the first halving in November 2012, Bitcoin’s value increased from $12 (its pre-event level) to $1,200 (a hundred times higher).
It increased by a factor of thirty during the second half, from $650 to $20,000. From $8,500 to almost $19,500—an increase of eight times—during the third halving, he said.
Quigley noted that the multiple has been steadily decreasing, going from 100 times to 30 times and, most recently, eight times, even though the price of Bitcoin has always been increasing after the halving events.
According to his prediction, it may happen four or three times this time. By [probably] April 20, the price of Bitcoin might have recovered to $70,000 again, putting it in a position to surpass $300,000 by a factor of four.
Using data from the three prior rally cycles after the halving, Quigley estimated that Bitcoin would need 500 days to 18 months to reach its next all-time high, which would occur in October 2025.
After the halving, the crypto veteran kept poring into the responses of Bitcoin miners, retail investors, and banks.
“We need to be limiting the quantity of daily Bitcoin collected, according to Quigley, “if Bitcoin is going to be working as it should.” “Therefore, starting [probably] on April 20, we will decrease from 900 to 450.”
The miners would face both new obstacles and possibilities as a result of the decrease in mining profits. “At the time, when Bitcoin was about $40,000, the majority of miners were making a tidy profit…” According to Quigley, they’re making a lot of money at $67,000.
Competition will likely heat up in proportion to the increase in Bitcoin price, even if this would increase mining companies’ profit margins. This is because more industry participants will be interested in getting in on the rise.
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