According to the CEO of Marathon Digital Holdings, the largest U.S. cryptocurrency mining company, the long-awaited bitcoin "halving" event has already been partially factored in by the market.
In an interview with Bloomberg TV on Tuesday, Marathon CEO Fred Thiel gave his opinion on the potential impact of the #ETF approval on bitcoin's price performance.
"I think the very successful ETF approval has attracted capital to the market and essentially pushed back the price increases that we typically see three to six months after the price has halved.
So I think we're already seeing some of that change.
Marathon, headquartered in Fort Lauderdale, Florida, operates several #mining operations across the country, including in Texas.
#BTC mining is an energy-intensive process in which special computers validate transactions on the blockchain and miners are rewarded in the form of tokens.
The halving event scheduled for the end of April will cut miners' rewards in half, affecting their main source of income.
Thiel commented on the expected impact of the halving event on the price, "The halving event will likely have a negligible impact on the price as bitcoin supply will be reduced by about 450 units per day.
However, we miners would very much like to participate in a halving event where the price does not drop before the halving, but instead rises.
Optimistic sentiment due to record demand for U. S. exchange-traded funds (ETFs) that directly hold cryptocurrencies is the main reason.
The leading #cryptocurrency fell 4% on Tuesday, its first drop in four trading sessions, to close at $BTC Since hitting a record high of $73,797 on March 14, the price of the digital asset has fallen about 7%.
Mr. Thiel estimates that for Marathon to remain profitable, the break-even point after the price has halved would have to be around US$46,000 per bitcoin.
I'm very optimistic.
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