The president of Marathon, the largest U.S. cryptocurrency mining company, said the spot approval of a Bitcoin ETF brought forward an expected post-halving rally.
“I think the ETF approval was a great success, bringing capital into the market and essentially bringing forward the price increases that would normally be seen three to six months after the halving,” Fred Thiel said in an interview. ” he said. He reported with Bloomberg on April 9th.
“So I think we're already understanding some of that and that's driving some of the demand forward.”
Will there be a rebound after the halving?
Thiel explained that the halving event will reduce Bitcoin's supply by about 450 coins per day, “which will probably have some impact on the price.”
He added that the mining company was pleased with the pre-halving rally, which bucked the trends seen in previous market cycles.
“But as miners, we are very much looking forward to going into the halving. For once before the halving the price did not fall, but rather the price rose, so everyone is clearly making the most of it. We are using it for.”
Thiel estimated that the break-even point for the company to remain profitable after the halving would be around $46,000 per BTC.
Bitcoin mining expert Jaran Merelud predicted that the hashrate will not drop much after the halving.
“A halving should not be viewed as an event that reduces hashrate, but rather as a temporary halt in hashrate’s relentless upward trajectory.”
He added that a bull market will still exist after the halving, “However, increased demand, rather than a marginal decrease in supply, will be the main factor driving higher prices.”
However, Bitfinex predicted that the post-halving bull market would see Bitcoin prices rise to $150,000.
Bitcoin price outlook
Bitcoin prices have risen 65% so far this year in the four months leading up to the halving scheduled for around April 20, just 10 days later.
However, since the beginning of March, the BTC price has been within a range of around $60,000 and has not broken out or seen any major corrections.
Investor and analyst Oliver Isaacs noted that exchange BTC is at a six-year low and several other countries are preparing to license Bitcoin ETPs.
Nevertheless, after a 3% drop on the day, the asset remains within a sideways channel, trading at $69,200 at the time of writing.
