The boss of Marathon, America’s largest crypto mining firm, recently discussed the impact of spot Bitcoin ETF approvals on the market. Fred Thiel mentioned in an interview with Bloomberg that the ETF approval accelerated what would have been the post-halving rally. This approval attracted capital into the market and brought forward the price appreciation that is typically seen three to six months after halving.
Thiel further explained that the halving event would reduce the supply of Bitcoin by about 450 a day, leading to a small impact on prices. As a mining firm, he expressed excitement about the pre-halving rally, noting that prices have gone up rather than declining prior to the halving, which is a change from previous market cycles. Thiel estimated that their break-even rate would be around $46,000 per BTC to remain profitable after the halving.
Bitcoin mining expert Jaran Mellerud predicted that the hash rate would not decrease significantly after the halving. He emphasized that halvings should be seen as brief pauses in the hash rate’s upward trajectory. Bitfinex, on the other hand, forecasted that the post-halving bull market could push Bitcoin prices to $150,000. Despite the increase in prices by 65% so far this year leading up to the halving, BTC has been range-bound in the upper $60K bracket since early March.
Investor and analyst Oliver Isaacs pointed out that BTC on exchanges hit a six-year low, indicating a potential decrease in available supply. Additionally, several countries are preparing to permit Bitcoin ETPs, which could further drive demand for the asset. The market was trading at $69,200 at the time of writing, experiencing a 3% decline on the day, but remaining within its sideways channel.
The approval of spot Bitcoin ETFs has had a significant impact on the market, bringing forward the post-halving rally and increasing capital inflows. Mining firms have shown excitement about the price appreciation and the potential profitability following the halving. Predictions and forecasts suggest a bullish trend in the market, with potential for further price surges in the future. Overall, the market dynamics are evolving rapidly, influenced by various factors such as supply reduction, demand growth, and regulatory developments.
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