Bittime - The crypto world is preparing for a monumental event, namely the Bitcoin halving . Expected to occur in April 2024, the halving is a halving of Bitcoin mining rewards, a core mechanism designed to preserve Bitcoin's value.
Veteran crypto expert and co-founder of leading stablecoin Tether , William Quigley recently outlined his views on the far-reaching impact of the Bitcoin halving. He not only outlines the ins and outs of halving, but also its impact on miners, individual investors, and financial institutions.
Bitcoin Halving Price: Towards $300,000?
Quigley started the discussion with a post-halving Bitcoin price prediction. It refers to the historical pattern of how the market reacts to these events.
"Historically, Bitcoin prices always increase in the months after the halving," said Quigley.
"At the first halving in November 2012, the price of Bitcoin (BTC) jumped 100-fold from $12 to $1,200."
"The second halving, the price rose about 30 times, from $650 to $20,000. And in the third halving, the price rose eightfold, from $8,500 to about $19,500," he continued.
Although Bitcoin prices always spike post-halving, Quigley points out that the rise continues to decline. From 100 times to 30 times, then to 8 times in the final event.
"So, maybe this time the increase will only be around four times or three times," he predicted. If Bitcoin prices return to the $70,000 level on (estimated) April 20, a fourfold increase could surpass the $300,000 mark.
Based on data analysis of previous post-halving rally cycles, Quigley estimates it will take 500 days to 18 months for Bitcoin to reach its next high, which is around October 2025 for this fourth event.
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Impact of Bitcoin Halving on Miners and Investors
Quigley then outlined the domino effect of the Bitcoin halving on miners, individual investors, and financial institutions.
"For Bitcoin to continue to function as intended, we need to reduce the amount of Bitcoin mined each day," Quigley said. "So, the number of Bitcoins mined will fall from 900 to 450 starting (estimated) April 20."
This reduction in mining rewards will pose significant challenges and opportunities for miners. "A few months ago when the price of Bitcoin was around $40,000, most miners were still making a profit. At the $67,000 level now, they are clearly making big profits," said Quigley.
However, while Bitcoin prices have the potential to skyrocket and increase mining profit margins, competition will likely become fiercer as more players look to profit from the rally.
For individual investors, halvings present a nuanced situation. Quigley suggests taking a long-term investment perspective.
"Unlike traditional companies that generate their own profits and launch new products, Bitcoin operates as an open-source platform managed and utilized by a community of independent users," Quigley emphasized.
Therefore, Bitcoin's value cannot be determined by traditional financial metrics. "Bitcoin's value is determined purely by the sentiment of its buyers and sellers," Quigley said.
"If you try to trade on daily sentiment, sentiment is random. It goes up and down throughout the day. I wouldn't day trade Bitcoin," he advises. "If you are looking to purchase Bitcoin or another crypto asset for the first time, allocate the funds as a very small portion of your total net worth."
"In addition, never buy crypto assets unless you can afford to hold them for five years," he added. "It doesn't mean you have to hold it for five years, but you need to have the ability to do it."
USDT/IDR Tether Price Today
Source: Bittime.com
On March 28, 2024, the price of Tether USDT/IDR was at IDR 15,946 per coin, up 0.10% in the last 24 hours.
Also Read How to Buy Crypto:
Many Crypto Quant Trading Companies Appear After Bitcoin Halving
Regarding institutional players, the co-founder of Tether and WAX believes that more quantitative trading companies (quant trading) focused on crypto investment will emerge post-halving due to soaring trading volumes.
"In the first halving in 2012, daily trading volume was probably less than a million dollars," Quigley said. "In the third halving in 2020, the volume reached $15 billion to $30 billion per day, even reaching $100 billion."
"When trading volume and crypto transactions take place 24 hours a day, 7 days a week, there will always be price disparities that people can take advantage of," he explained.
"The main trading volume of Bitcoin occurs in the Bitcoin futures market. If you can use leverage to take advantage of it, you can make a lot of profit, but you can also lose a lot of money," said Quigley. "However, the futures market will always attract people who think they can take advantage of price differences and make a lot of money."
Conclusion
Bitcoin's halving marks a watershed moment in the crypto world, bringing significant changes to miners, investors, and the market as a whole. The prediction of Bitcoin's price reaching $300,000 accompanied by the emergence of crypto quant trading companies has further added to the excitement and optimism in the crypto community.
However, it is important to remember that crypto investments always involve risks. Conduct in-depth research and apply the right investment strategy to maximize opportunities and minimize risks on your journey in this dynamic crypto world.
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How to Buy Tether (USDT) on Bittime
You can buy and sell Tether (USDT) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Tether (USDT) is available on Bittime with the USDT/IDR market pair . To be able to buy USDT/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Tether (USDT) on Bittime.
Monitor price chart movements of Tether (USDT) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Whales Buying BTC Makes the Market Uproar! $6 Billion Transaction Called First Spark for Halving
Buy ETH Now or After Bitcoin Halving in April?
Storm Hits Kucoin: Money Laundering Charges Rock Platform and Users
DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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