The CEO of Marathon, the largest crypto mining firm in America, emphasized the significant impact of spot Bitcoin ETF approvals on the market. Fred Thiel mentioned in an interview with Bloomberg that the approval of ETFs has attracted capital into the market and expedited the price appreciation that would typically occur after a halving event. This acceleration has resulted in an earlier manifestation of the anticipated post-halving rally.
Halving Event and Price Impact
Thiel further explained that the upcoming halving event is expected to reduce the daily supply of Bitcoin by approximately 450 coins. While acknowledging that this reduction would have a minor impact on prices, he expressed excitement as a mining firm to witness a pre-halving rally, contrary to the trend seen in previous market cycles. Thiel estimated the company’s break-even rate at around $46,000 per BTC to ensure profitability post-halving.
Bitcoin mining expert Jaran Mellerud shared a positive outlook, suggesting that the hash rate would not significantly decline after the halving. He viewed halvings not as events that lower the hash rate but as temporary pauses in its continual upward trajectory. Mellerud emphasized that the growing demand, rather than the slight supply decrease, would be the primary driver of the upcoming bull market in the cryptocurrency space.
Bitcoin Price Trends and Future Projections
Despite the optimistic sentiments, Bitfinex predicted that the post-halving bull market could potentially drive Bitcoin prices to reach $150,000. The price of Bitcoin has already surged by 65% in the first four months of the year leading up to the halving event scheduled for April 20. However, the cryptocurrency has remained rangebound in the upper $60K bracket since early March, exhibiting stability without major corrections or breakout movements.
Investor and analyst Oliver Isaacs highlighted that the amount of BTC held on exchanges is at a six-year low, indicating a reduction in selling pressure. Furthermore, several countries are considering the approval of Bitcoin ETPs, signifying a growing acceptance and adoption of the digital asset. As of the latest update, Bitcoin was trading at $69,200, with a 3% decline on the day, remaining within a sideways trading range.
The approval of spot Bitcoin ETFs has evidently impacted the market dynamics, accelerating the post-halving rally and generating optimistic projections for future price movements in the cryptocurrency space. The evolving landscape of Bitcoin and its growing demand signal a potentially bullish trend in the market following the upcoming halving event.