The CEO of Marathon Digital Holdings Inc., the leading cryptocurrency miner in the United States, suggests that Bitcoin’s much-anticipated “halving” event might already be partially reflected in the market. Speaking with Bloomberg TV recently, CEO Fred Thiel shared insights on how the approval of the ETF could influence Bitcoin’s price trajectory.
Thiel noted, “I believe the ETF approval, which has been remarkably successful, has drawn capital into the market and essentially accelerated what could have been the typical price surge occurring three to six months after the halving.” He added, “Therefore, we might already be witnessing a portion of that effect, which has spurred some of the demand.”
Bitcoin Halving Will Have Small Effect on Price
Headquartered in Fort Lauderdale, Florida, Marathon operates several mining facilities across the United States, including in Texas. Bitcoin mining entails a resource-intensive process whereby specialized computers validate transactions on the blockchain, earning miners rewards in the form of tokens.
The upcoming halving event, slated for late April, will halve the reward for miners, impacting their primary revenue stream. Marathon CEO Thiel remarked on the expected consequences of the halving, stating, “The halving event will reduce the supply of Bitcoin by about 450 a day, which is likely to have some minor impact on prices.” He added, “However, as miners, we’re eagerly anticipating the halving. Unlike previous instances where prices declined prior to the halving, this time prices have risen. This positive trend is encouraging for everyone involved.”
Bitcoin has witnessed an impressive surge of over 60% since the start of this year, largely propelled by optimistic sentiments surrounding the unprecedented demand for US exchange-traded funds (ETFs) directly holding the cryptocurrency.
However, the leading cryptocurrency experienced a 4% dip on Tuesday, marking its first decline in four trading sessions, with its price hitting $68,773.
Since reaching its all-time high of $73,797 on March 14, the digital asset has seen a decrease of approximately 7%.
Thiel estimated that Marathon’s break-even rate following the halving would be approximately $46,000 per Bitcoin in order to maintain profitability.
Bitcoin Price Action After Halving Could Be Negative
According to reports, Billionaire Arthur Hayes has expressed a cautious perspective regarding the forthcoming Bitcoin halving and its potential impact on the asset’s price.
While numerous experts foresee a substantial rally for Bitcoin post-halving, Hayes holds the belief that the price movement before and after the event could actually be unfavorable.
Despite the cautionary stance of billionaire Arthur Hayes, other industry leaders, such as Ripple CEO Brad Garlinghouse, maintain an optimistic outlook.
Garlinghouse anticipates that the total market capitalization of cryptocurrencies will double this year, primarily propelled by spot ETFs and the Bitcoin halving.
He asserts that the introduction of genuine institutional investment via ETFs is a significant driver behind this positive outlook.
“I’m very optimistic. I think the overarching trends, particularly things like the ETFs, are bringing in real institutional investment for the first time,” he stated during an interview with CNBC on April 7.
