In a compelling appearance on CNBC’s “Squawk on the Street,” William Quigley talked about the intricacies of Bitcoin’s financial underpinnings and the evolving dynamics of institutional versus retail investment in the crypto market.

William Quigley is an experienced venture capitalist with a deep focus on blockchain and cryptocurrency technologies. As the Managing Director of Magnetic, he directs investments in the crypto sector. Quigley was an early investor in the groundbreaking payment platform PayPal and boasts a long history of supporting innovative technology companies.

His most recognizable achievement within the crypto space is co-founding WAX, a blockchain platform dedicated to the trading of virtual items and NFTs. Quigley’s extensive industry involvement includes serving as co-founder of the GoCoin cryptocurrency payments processor.

Quigley opened the discussion by highlighting the significance of the upcoming Bitcoin halving event in April, where the reward for miners will be halved. This event, he noted, positions Bitcoin more favorably compared to its status during the last halving four years ago. At that time, the market lacked features such as ETFs and had minimal derivative volume.

In contrast, he said, today’s market sees a substantial increase in derivative volume and has witnessed an impressive adoption of US-listed spot Bitcoin ETFs, with nearly $50 billion, or about 740,000 Bitcoin, currently held in these funds. According to Quigley, daily inflows into these ETFs range from $150 million to $500 million, signalling strong and positive momentum for Bitcoin.

Discussing the mix of institutional versus retail interest in Bitcoin, Quigley pointed out a significant shift from the pre-2020 landscape, which was predominantly driven by retail investors. He said that the current market sees a robust influx of institutional money, drawn in part by Bitcoin’s volatility and its status as a purely sentiment-driven asset. He also mentioned that, unlike traditional investments, Bitcoin does not rely on company performance or price-to-earnings ratios and that its value is entirely shaped by market sentiment. This unique characteristic, according to Quigley, suggests that “sentiment has no limits,” potentially setting the stage for an unprecedented rally in the crypto market.

Quigley cautiously interpreted historical patterns to suggest that Bitcoin could reach heights of over $300,000 at the peak of the next bull market. This prediction hinges on the assumption that historical trends will hold, a scenario that would not only benefit Bitcoin but also propel other cryptocurrencies, such as Ethereum and Solana, upward in lockstep. Given their lower market caps, he claims, these alternative tokens may experience even more significant gains relative to Bitcoin.