Fred Thiel, the CEO of America’s largest crypto mining firm, Marathon, expressed his view that the recent approvals of spot Bitcoin ETFs have accelerated what would typically have been the post-halving rally in the market. According to Thiel, the ETF approval has attracted significant capital into the market, leading to an earlier price appreciation than expected following the halving event. This influx of capital has influenced the demand dynamics in the market and has brought forward the positive price movement that would have occurred three to six months post-halving.
Thiel highlighted the significance of the halving event, which is expected to reduce the supply of Bitcoin by approximately 450 coins per day. While this reduction in supply is likely to have a modest impact on prices, Thiel pointed out that the market is already experiencing a pre-halving rally, contrary to previous market cycles where prices tended to decline before the halving. As a mining firm, Marathon is optimistic about the current market conditions and the potential for profitability post-halving.
Bitcoin mining expert Jaran Mellerud shared insights on the hash rate post-halving, suggesting that halvings should not be viewed as events that lower the hash rate but rather as temporary pauses in its upward trajectory. Mellerud speculated that there will still be a bull market following the halving, with growing demand being the primary driver of price surge, rather than the supply decline. Bitfinex’s prediction of Bitcoin prices reaching $150,000 in the post-halving bull market further reflects the positive sentiment surrounding the cryptocurrency.
As the halving event approaches, Bitcoin prices have already recorded a 65% increase this year, setting the stage for a potential surge in value. Despite the price rally, BTC has been trading in a rangebound pattern in the upper $60K bracket since early March, indicating a period of consolidation before a potential breakout. Investor and analyst Oliver Isaacs highlighted the low BTC reserves on exchanges and the increasing interest from countries in permitting Bitcoin ETPs, signaling a growing adoption of the cryptocurrency.
Current Market Status and Price Movement
At the time of writing, Bitcoin was trading at $69,200, reflecting a 3% decline on the day but remaining within its established sideways channel. The market is poised for potential movements leading up to the halving event, with various factors such as growing demand, regulatory developments, and investor sentiment shaping the future of Bitcoin prices. As the crypto market continues to evolve, the impact of spot Bitcoin ETF approvals and the upcoming halving event are expected to drive further market dynamics and price fluctuations in the coming months.
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