Fred Thiel, the CEO of Marathon Digital Holdings Inc., recently discussed the upcoming Bitcoin halving and its potential impact on the market. In an interview with Bloomberg TV, Thiel suggested that the halving may already be factored into the current price of Bitcoin. He believes that the initial phase of Bitcoin’s adoption, particularly the authorization of Bitcoin ETFs, attracted a significant amount of capital into the market. This influx of money may have mitigated the price increase typically associated with halving events.
Thiel also noted that Bitcoin ETFs have made the cryptocurrency more appealing and have increased demand. The approval of these portfolios has resulted in a surge in BTC’s price. The CEO recognizes the positive influence of this policy, as it has attracted much-needed capital into the market. Marathon, the largest U.S. cryptocurrency miner headquartered in Florida, operates numerous mining operations across the country, including some in Texas.
The impending Bitcoin halving, scheduled for the end of April, is expected to have a positive impact on mining. However, it will also reduce mining remuneration by half, significantly affecting earnings. According to Thiel, this halving will lead to a decrease in the supply of Bitcoin, with approximately 450 coins disappearing from circulation each day. While this may not have a substantial ripple effect on existing producers, Marathon’s CEO remains optimistic about the outcome. He highlights the disparity between the mining industry and other sectors, emphasizing the potential for positive results following the halving.
Bitcoin has not only maintained its value but has also experienced a 60% increase over the past year. The popularity of U.S.-based Bitcoin ETFs has largely contributed to this rise. Although Bitcoin reached a record-high price in mid-March, it experienced a slight decline shortly after. Thiel not only discussed Marathon’s operational thresholds but also provided an overview of the company’s strategic plan. He predicts that the company will be profitable after the halving, thanks to its break-even rate of $46,000 per Bitcoin.
Industry leaders have differing opinions on the future of Bitcoin prices post-halving. While Arthur Hayes of BitMEX predicts a potential price drop, other CEOs, such as Ripple’s Brad Garlinghouse, are more optimistic. Garlinghouse anticipates a significant increase in the cryptocurrency market capitalization, particularly due to institutional money flowing in from ETFs. He also highlights the positive impact of ETFs on Bitcoin’s public perception and the entry of larger institutional investors into the market. There is a consensus that the halving and formalization of ETFs can bring about positive developments in the cryptocurrency system. Although uncertainty remains, the prevailing sentiment is that market growth is the key driver for Bitcoin’s price moving forward.