CEO of Marathon Digital Holdings Inc., Fred Thiel, discussed the forecast of Bitcoin’s dynamics before its halving. Thiel said during an interview with Bloomberg TV that the halving might be priced at this moment. He believed that the first phase of this early adaptation was the authorization of Bitcoin ETFs. It is this, he said, that pulled large amounts of money into the market. He posits that this flood could have robbed this price increase that normal halving events generate.
Along with Thiel, he noted that ETFs made Bitcoin more attractive and increased demand. He said that the portfolio approval increased BTC’s price. The CEO has identified the positive influence of such a policy on the market, including the attraction of a much-needed inflow of capital. As the largest U.S. cryptocurrency miner, Marathon (headquartered in Florida) runs many mining operations across the country, including some in Texas.
The implications of Bitcoin halving on mining
The forthcoming BTC halving event, which was planned to be around the end of April, is a positive factor. It is the factor that strongly affects miners like Marathon Digital Holdings. This process will reduce their mining remuneration towards half, however, which involves the most significant way of their earnings.
According to Thiel, there is expected to be a decreasing supply of Bitcoin that would translate to the disappearance of about 450 of them every day. It might not bring about a greater rippling effect on existing producers, but Marathon’s CEO was still upbeat when he talked about it. He elucidated the difference between people in the mining industry and their prices, in a sense that was opposite to what other sectors were experiencing before the halving.
Bitcoin hasn’t just maintained its level, it has seen a rise of even up to 60% over 1 year. The popularity of US-based Bitcoin ETFs generally causes this rise. Bitcoin reached its record-high price in mid-March, but after a few days, it saw a slight downfall. Not only did Thiel talk about Marathon’s operation thresholds, but he also gave an overview of Marathon’s strategic plan. He predicted the company would be able to make a profit after halving, thanks to its break-even rate being $46,000 per Bitcoin.
Industry perspectives on Bitcoin’s future
Many industry leaders are divided over what would happen to Bitcoin prices after the halving. Arthur Hayes of the Billions made his cooling remarks, pointing to the probable price fall after the halving. Similar to that, some chief executives are still positive. For example, Ripple’s CEO Brad Garlinghouse predicts a massive rise in the cryptocurrency market capitalization. He believes that this optimism came from a supply-and-demand perspective, specifically with institutional money coming from ETFs.
Garlinghouse also touched upon things like Bitcoin weathering the wave of public opinion boosting ETFs’ adaptation, letting bigger institutional investors make their footing in this market. There is a shared opinion that positive propositions can arise from the halving and formalization of ETFs, consequently benefiting the whole cryptocurrency system. Even though in doubt, the present situation is that from now on, market growth is the best direction for the price of Bitcoin.
News sourced from; https://www.bloomberg.com/news/articles/2024-04-09/marathon-ceo-thiel-says-mara-bitcoin-halving-rally-partially-priced-in
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