America’s largest cryptocurrency mining company Marathon’s CEO Fred Thiel, in a recent interview, made significant remarks about the impact of the approval of spot Bitcoin ETFs on the cryptocurrency market in the U.S. Thiel claimed that spot Bitcoin ETFs tend to accelerate and bring forward the rally that typically starts after a block reward halving.
Spot Bitcoin ETF Approval Accelerates Post-Halving Rally
Speaking to Bloomberg on April 9, Thiel stated that the approval of spot ETFs in the U.S. has accelerated the Bitcoin rally that usually begins after a block reward halving, pulling it forward. He highlighted that due to ETF approvals, capital inflows into the market, which typically start three to six months after a block reward halving, have begun much earlier.
Thiel touched on the importance of the Bitcoin block reward halving, noting that it will reduce the daily supply of new BTC by about 450 units, which will naturally create some upward pressure on the price. He added that as a mining company, Marathon is pleased with the rally starting before the block reward halving, contrary to the trend observed in previous market cycles.
Thiel emphasized that the company has high profitability expectations following the block reward halving and noted that to maintain profitability, the price of Bitcoin must not fall below $46,000.
Majority Expects Uptrend Following Block Reward Halving
Contrary to concerns about a significant drop in hashrate following the block reward halving, Bitcoin mining expert Jaran Mellerud thinks differently. Mellerud stated that the block reward halving is not an event that reduces the hashrate but should be seen as temporary pauses in an uptrend. He emphasized that the primary driving force of the bull market after the halving will be the increase in demand rather than the modest decrease in supply.
Cryptocurrency exchange Bitfinex, in its report, predicted that the price of Bitcoin could rise up to $150,000 following the block reward halving, indicating their expectation of a significant uptrend. Investor and analyst Oliver Isaacs mentioned that the supply of BTC on cryptocurrency exchanges is at its lowest level in six years and that several countries are preparing to approve spot-based Bitcoin investment products (ETPs), suggesting a supply shock is on the table.
Despite optimistic predictions, Bitcoin’s price has been stagnant above the $60,000 level since mid-March, showing signs of consolidation rather than a breakout or significant correction.
