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Cryptocurrency market volatility persists, leaving investors dissatisfied. Those with high leverage positions were caught off guard today as Bitcoin dropped to $65,600, and some altcoins saw losses up to 10%. What does the Tether CEO think?
Tether CEO’s Crypto Commentary
Having served as Tether’s CTO for a long time, the individual recently took over as the official CEO. The head of the largest stablecoin answered some questions about the current situation during an event on Friday. Ardoino was asked about the upcoming Bitcoin halving and its potential impact on price.
Tether CEO mentioned the difficulty in making predictions;
“Even today, Bitcoin demand far exceeds current mining production. We see with large institutions and ETFs that Bitcoin demand greatly surpasses the current mining output. Of course, mining production will halve, but this is a perception issue. The majority of Bitcoins have already been mined.”
The Future of Cryptocurrencies
Comments at the Bitfinex event focused on the enthusiastic support for spot Bitcoin ETFs. The once dominant and popular crypto exchange is not as prominent today, but Tether remains the largest stablecoin with a market value of $103 billion.
The next halving event is set for April, reducing miner rewards from 6.25 to 3.125 per block. Based on the current reward of 6.25 BTC per block with an average block time of about 10 minutes, approximately 900 BTC are mined daily. After the halving, the daily mined BTC amount will drop to 450.
This figure is quite low compared to the demand through ETF channels. According to data from BitMEX, ETF issuers’ daily entries already exceed these numbers. BlackRock alone added 4,886 BTC to its reserves on Thursday. After the halving, this daily demand could roughly equal 11 times the total daily production of all miners.
Considering the other 9 ETFs (and Fidelity alone has accumulated close to $10 billion in BTC), the daily demand could reach 40-50 times the daily supply (including institutional demand). Given that the supply on exchanges is around $140 billion, we might soon learn what a supply shortage looks like.
