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William E Quigley, The Managing Director of Magnetic, In an interview with CNN Business predicted that Bitcoin price could reach $150000 by the first quarter of 2022.
With Bitcoin experiencing a great bull run, almost touching the $60K mark tumbling down to $45K and currently recovering back hovering around the $50K mark.
Here’s what Quigley has to say about the future of Bitcoin and the reasoning behind his bullish prediction.
The Halving Effect
Bitcoin Halving is an event where Bitcoin miners receive 50% less bitcoin for every transaction they verify which happens every 210000 blocks. This has happened 3 times in 2012, 2016, and most recently May 2020.
Thus, Quigley says after every halving event Bitcoin goes up by 300% to 500%, hence it is evidently possible for Bitcoin to achieve the $150000 mark by the first quarter of next year.
“We are about halfway through the post-halving bull run, so by my judgment, we have a lot more to go with Bitcoin. Certainly a hundred thousand and quite possible a $150000 by the end of this year to maybe Q1 next year”.
In the past, the BTC price did rise from $12 to $1150 after 2012 halving and $650 to $20000 rise after 2016 halving.
The corporate giants take on investment in BTC
With companies like Tesla, Square and MasterCard entering the Crypto Assets Investment market, and having an interest in the decentralized currency, more Fortune 500 Company’s could enter the market.
Mr Quigley when asked said the fact that Bitcoin is finite in number, and is a good hedge against rising inflation on fiat money. And this will lure the corporates to eventually hold an investment because they have trillions of dollars and investment in government bonds is absolutely no good as they have a negative yield. Hence everybody will add Bitcoin to their balance sheet as a store of value for sure.
“The last survey I saw showed that 5% of the public- traded companies in the US would consider adding Bitcoin to their balance sheets,”, and the reason they are thinking that is that corporates have trillions of dollars in cash – and where do they put it? The government bonds but $17 trillion of them yield negative returns”.