Is The Bull Run Nearing its End? Marathon CEO Asserts Bitcoin ‘Halving’ Rally Already Priced In
11 April 2024 - 5:30AM
NEWSBTC
In anticipation of the upcoming Bitcoin Halving event, which is
expected to occur later this month, Marathon Digital CEO Fred Thiel
believes that the price impact may already be factored into the
market to a certain extent. Thiel shared his insights in a
recent interview with Bloomberg, in which he discussed the
potential catalysts for further price increases and their
implications for the mining industry. Related Reading: From Hat To
Heights: Dogwifhat’s $17 Crypto Leap Electrifie Investors
Bitcoin Halving Impact Mitigated By ETF Surge? The “halving”
event, a software code update that occurs approximately every four
years, is often regarded as a key driver of Bitcoin’s price
appreciation. The update will reduce the block reward for miners by
half, meaning they will receive fewer Bitcoins as a reward for
validating transactions on the blockchain. However, Thiel
noted that the impact of The Halving may not be as significant this
time, as the recent approval of Bitcoin exchange-traded funds
(ETFs) has already attracted substantial capital to the market.
Thiel explained: The ETF approval, which has been a huge
success, has attracted capital into the market and essentially
brought forward what could have been the price appreciation we
typically would have seen three to six months post-halving. So I
think we are seeing part of that now already and that has put
forward some of the demand. While the halving event is expected to
reduce the daily supply of new Bitcoins by approximately 450, Thiel
believes the price impact may be relatively modest. However,
the Marathon CEO expressed excitement about the positive price
trend leading up to the halving, stating: As miners, we are
very excited to go into a halving, where for once prices have not
declined prior to the halving rather prices have gone up so
everybody is obviously maximizing to that. Balancing ETF Inflows
And Previous Halving Patterns Thiel’s observations come amidst the
noteworthy inflows into Bitcoin ETFs, which have amassed nearly $12
billion in just three months of trading in the United States.
While these inflows may have contributed to the current price
appreciation, historical data reveals that Bitcoin still possesses
considerable growth potential leading up to The Halving. To gain a
comprehensive understanding, it is crucial to examine the recent
surge in Bitcoin’s value, which has soared by nearly 370% from its
bear market low of $15,400 to an all-time high (ATH) of $73,700 on
March 14, 2024. In conjunction with this surge, past halving
events provide valuable insights into Bitcoin’s price movements and
the likelihood of surpassing the significant milestone of $100,000.
During the first halving in November 2012, Bitcoin’s price
experienced a remarkable surge from a low of $13 to a peak of
$1,152 the following year, illustrating an impressive increase of
8,753%. Similarly, the second halving event in July 2016
witnessed Bitcoin’s price ascending from $664 to a new ATH of
$17,760, reflecting a surge of 2,580% after the halving. The
most recent Halving event in May 2020 saw Bitcoin’s price reach a
significant milestone of $67,000, surging from a low of $9,730,
which accounted for a substantial increase of 593% following the
halving. Related Reading: Ethena (ENA) Is ‘The LUNA Of This Cycle’
With 20x Potential: Expert In perspective, while the potential
scenario outlined by Thiel suggests that The Halving may be
partially priced in due to the influence of ETF inflows, historical
patterns suggest that Bitcoin still has plenty of room to run
before the event. Several market pundits have also set their
price targets for this bull run at the coveted $100,000 level in
light of the upcoming halving event. However, it remains to be seen
how the price of Bitcoin will react, taking into account factors
such as the influx of capital through ETFs, historical data, and
potential market dynamics. Currently, BTC is trading at $68,400,
down 0.4% from yesterday’s price. Featured image from
Shutterstock, chart from TradingView.com
Flow (COIN:FLOWUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Flow (COIN:FLOWUSD)
Historical Stock Chart
From May 2023 to May 2024