The recent approval of spot Bitcoin ETFs has been a game-changer for the crypto market, according to Fred Thiel, the CEO of Marathon, America’s largest crypto mining firm. Thiel believes that the ETF approval has attracted a significant amount of capital into the market, leading to a surge in prices that would typically be seen three to six months after the halving event. This has resulted in a unique situation where the post-halving rally has been brought forward.
Thiel further explained that the halving event, which reduces the supply of Bitcoin by about 450 coins per day, has also played a role in the price appreciation. As a mining firm, Marathon is particularly pleased with the pre-halving rally, as it has defied the trend seen in previous market cycles. Thiel estimated that the firm’s break-even rate would be around $46,000 per BTC to remain profitable post-halving.
Bitcoin mining expert Jaran Mellerud echoed Thiel’s sentiments, predicting that the hash rate would not experience a significant drop after the halving. He emphasized that halvings should not be viewed as events that lower the hash rate but rather as temporary pauses in its upward trajectory. Mellerud suggested that the growing demand, rather than the decrease in supply, would be the primary driving factor behind the price surge.
Despite the positive outlook, Bitfinex has predicted that the post-halving bull market could propel Bitcoin prices to $150,000. The cryptocurrency has seen a 65% increase in value this year leading up to the halving, which is just around the corner. Although BTC prices have been rangebound in the upper $60K bracket since early March, there is still optimism in the market.
At the time of writing, Bitcoin was trading at $69,200, following a minor 3% decline. The asset remains within a sideways channel, indicating a period of consolidation. Investor and analyst Oliver Isaacs highlighted the fact that BTC on exchanges was at a six-year low, signaling strong hodling behavior among investors. Additionally, several countries are gearing up to allow Bitcoin ETPs, further boosting the cryptocurrency’s adoption and legitimacy in the financial markets.
The approval of spot Bitcoin ETFs has had a significant impact on the crypto market, accelerating the post-halving rally and attracting more capital into the industry. Despite the ongoing price fluctuations, the overall outlook remains positive, with experts predicting further price surges and increased adoption of Bitcoin in the mainstream financial sector.
Leave a Reply