Anticipating the future Bitcoin Halving eventMarathon Digital CEO Fred Thiel is of the opinion that, although the actual price increase will not occur until later in the month, the effect on the market has already been accounted for to an extent.
Thiel’s insights were shared in a recent article. interview He spoke with Bloomberg about the possible catalysts of further price rises and the implications they have for the mining sector.
Bitcoin Halving Impact Mitigated by ETF Surge
It is important to note that the word “you” means “you”. “halving” The software code upgrade that happens approximately every 4 years is often considered a major driver for Bitcoin price growth. Update will decrease the block reward The reward to miners for validating the transactions on blockchain will be cut in half.
Thiel observed that The Halving might not have the same impact as recent times. approval Bitcoin Exchange-Traded Funds (ETFs), which are currently available, have attracted considerable capital into the market. Thiel explained.
This approval of the ETF, which was a great success, brought capital to the market, and has essentially brought the expected price increase forward, that we would normally have experienced three or six months after the halving. We are already seeing some demand.
The halving of the price is anticipated to have a significant impact on the daily supply Thiel is of the opinion that the effect on Bitcoin prices may only be modest.
The Marathon CEO was excited about the price trends that led up to the half-off, saying:
Miners are thrilled to have a price halving. For once, the prices had not fallen prior to this halving but rather, have increased.
Balancing Inflows of ETFs with Previous Patterns Of Halving
Thiel’s comments come in light of the impressive inflows to Bitcoin ETFs. They have amassed almost $12 billion after just three months in trading.
These inflows could have contributed to current price increases. historical data The Halving will reveal that Bitcoin has a considerable amount of growth potential.
For a complete understanding of Bitcoin it’s important to look at the recent rise in its value. It has gone up by over 370%, from the low of 15400 dollars to now an astounding $18,400. all-time high The (ATH) is $73,700 by March 14, 2024.
Previous halvings provide insight into Bitcoin price fluctuations and its future. likelihood It is a significant achievement to surpass the $100,000 milestone.
Bitcoin experienced an incredible increase in price during the first half-halving of November 2012. The Bitcoin price went from $13 at the time to $1,152 by the end of the year. This represents an 8,753% rise.
Similarly, in July 2016, Bitcoin’s price increased from $664, to a new ATH, of $17.760. That is a gain of 2,580%.
Bitcoin price reached $67,000 after the latest halving in May 2020. It had risen from $9.730 at its lowest point, a significant increase of 593 percent.
While the scenario described by Thiel may suggest that The Halving is partially priced-in due to ETF flows, historic patterns indicate that Bitcoin has still plenty of time to grow before the event.
Many market experts have set their own prices. their price targets For this bull rush at the $100,000 level, given the forthcoming halving.
It remains to be determined how Bitcoin’s price will respond, considering factors like the inflow of capital via ETFs and historical data.
BTC’s current price is $68,400. It has fallen 0.4% since yesterday.
Charts from TradingView.com and Shutterstock.
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