In anticipation of the upcoming Bitcoin Halving event, which is expected to occur later this month, Marathon Digital CEO Fred Thiel believes that the price impact may already be factored into the market to a certain extent.
Thiel shared his insights in a recent interview with Bloomberg, in which he discussed the potential catalysts for further price increases and their implications for the mining industry.
Bitcoin Halving Impact Mitigated By ETF Surge?
The “halving” event, a software code update that occurs approximately every four years, is often regarded as a key driver of Bitcoin’s price appreciation. The update will reduce the block reward for miners by half, meaning they will receive fewer Bitcoins as a reward for validating transactions on the blockchain.
However, Thiel noted that the impact of The Halving may not be as significant this time, as the recent approval of Bitcoin exchange-traded funds (ETFs) has already attracted substantial capital to the market. Thiel explained:
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.
While the halving event is expected to reduce the daily supply of new Bitcoins by approximately 450, Thiel believes the price impact may be relatively modest.
However, the Marathon CEO expressed excitement about the positive price trend leading up to the halving, stating:
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.
Balancing ETF Inflows And Previous Halving Patterns
Thiel’s observations come amidst the noteworthy inflows into Bitcoin ETFs, which have amassed nearly $12 billion in just three months of trading in the United States.
While these inflows may have contributed to the current price appreciation, historical data reveals that Bitcoin still possesses considerable growth potential leading up to The Halving.
To gain a comprehensive understanding, it is crucial to examine the recent surge in Bitcoin’s value, which has soared by nearly 370% from its bear market low of $15,400 to an all-time high (ATH) of $73,700 on March 14, 2024.
In conjunction with this surge,…
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