The CEO of Marathon Digital Holdings Inc., recognized as the largest cryptocurrency miner in the United States, suggests that the highly anticipated “halving” event for Bitcoin may already be partially accounted for in the market. Fred Thiel shared his insights during an interview with Bloomberg TV, discussing the potential impact of the approval of Bitcoin ETFs on the cryptocurrency’s price performance.
Thiel highlighted the significant success of ETF approval, noting its role in attracting capital into the market. He further suggested that this influx of capital may have accelerated the typical price appreciation that occurs in the months following a halving event.
In his words, “I think the ETF approval, which has been a huge success, has attracted capital into the market and essentially brought forward what could have been the price appreciation we typically would have seen three to six months post halving. So I think we are seeing part of that now already, and that has put forward some of the demand.”
Thiel’s comments shed light on the complex interplay between market dynamics and regulatory developments, offering valuable insights into the factors influencing Bitcoin’s price trajectory amidst the anticipation of significant events like halving.
The impact of the Bitcoin halving on price is expected to be minimal.
Headquartered in Fort Lauderdale, Florida, Marathon operates several mining facilities throughout the United States, notably in Texas.
Bitcoin mining involves the energy-intensive process whereby specialized computers validate transactions on the blockchain, earning miners rewards in the form of tokens. With the impending halving event set for late April, the reward for miners will be halved, thereby affecting their primary revenue stream.
Fred Thiel, Marathon’s CEO, highlighted the expected consequences of the halving, stating, “The halving event will reduce the supply of Bitcoin by about 450 a day, which would have some small impact on prices probably.”
Thiel’s assessment underscores the significance of the halving event, which decreases the rate at which new Bitcoin is produced, potentially leading to a reduction in available supply. This could, in turn, exert upward pressure on prices, albeit to a lesser extent compared to previous halving events.
“But as miners, we are very excited to go into a halving, where for once prices have not declined prior to the halving; rather, prices have gone up, so everybody is obviously maximizing to that.”
The CEO of Marathon, the largest Bitcoin mining company, said that the market may have anticipated the Bitcoin halving to a certain extent. After the halving, this mining company can maintain profitability at $46,000 per Bitcoin. https://t.co/lqJO6oal6b
— Wu Blockchain (@WuBlockchain) April 10, 2024
Bitcoin has witnessed an impressive surge of over 60% since the start of the year, largely propelled by positive sentiments surrounding the unprecedented demand for US exchange-traded funds (ETFs) directly linked to the cryptocurrency.
However, the leading cryptocurrency encountered a 4% decline on Tuesday, marking its first drop in four consecutive trading sessions, with its price dipping to $68,773.
Following its peak at $73,797 on March 14, the digital asset has undergone a decline of approximately 7%.
Thiel projected that Marathon’s break-even point post-halving would hover around $46,000 per Bitcoin to ensure profitability.
The price movement of Bitcoin following the halving might lean towards the negative side.
Billionaire Arthur Hayes has recently voiced caution regarding the forthcoming Bitcoin halving and its potential impact on the cryptocurrency’s price dynamics. Contrary to the prevailing sentiment among many experts, who anticipate a notable upsurge in Bitcoin’s value post-halving, Hayes holds the belief that both the lead-up to and aftermath of the event could yield negative price movements.
Despite Hayes’ reservations, other prominent figures within the industry, such as Ripple CEO Brad Garlinghouse, maintain an optimistic outlook. Garlinghouse foresees a doubling of the total market capitalization of cryptocurrencies within the current year, largely attributable to the emergence of spot ETFs and the impending Bitcoin halving.
Garlinghouse emphasizes the influx of genuine institutional capital facilitated by ETFs as a pivotal factor underpinning his positive stance. In an interview with CNBC on April 7, he expressed his confidence in these macro trends, highlighting the transformative impact they are poised to have on the cryptocurrency landscape.
Read more about: Billionaire Arthur Hayes suggests Bitcoin’s price movement surrounding the halving “might be unfavorable.”
