Marathon, the largest crypto mining firm in the United States, has its CEO Fred Thiel speaking on the significant effects spot Bitcoin Exchange-Traded Funds (ETFs) have on the crypto market. In a Bloomberg interview on April 9, Thiel conveyed that the approval of these financial instruments in the U.S. seems to be a catalyst for an early rally in Bitcoin’s price, traditionally expected to follow a block reward halving event.
Early Market Movement and Profit Expectations
According to Thiel, the market, which usually sees increased capital inflows starting from three to six months post-halving, is witnessing these developments much sooner due to the spot ETFs. He discussed the upcoming halving event, slated to slash the daily Bitcoin creation by approximately 450 units, a change likely to exert upward price pressure. Marathon, benefiting from the early rally, has its profitability hinged on Bitcoin prices remaining above $46,000.
Industry Insights and Price Predictions
Differing from the worries about a potential drop in mining hashrate after the halving, Bitcoin mining expert Jaran Mellerud envisages the halving as merely a pause in a long-term uptrend driven by demand increase, not supply reduction. Similarly, cryptocurrency exchange Bitfinex anticipates a possible surge in Bitcoin price, reaching as high as $150,000 post-halving. Contributing to the bullish sentiment, investor and analyst Oliver Isaacs points out the historically low BTC supplies on exchanges and the potential approval of spot-based Bitcoin products by various countries, hinting at an impending supply shock.
Implications for the Reader
- The early Bitcoin rally triggered by spot ETFs could represent an advantageous period for investors to enter the market.
- Marathon’s profitability and the broader mining industry’s health hinge on Bitcoin’s price stability, serving as a metric for investors tracking sector performance.
- Upcoming block reward halving and the concomitant price predictions offer a strategic planning horizon for both individual and institutional investors.
Despite these bullish forecasts, Bitcoin’s price action has been somewhat static, hovering around the $60,000 mark since mid-March, with the market appearing to be in a consolidation phase rather than on the brink of a major price movement.