The upcoming Bitcoin halving: how will it affect the price of the cryptocurrency?
Is the Current Price of Bitcoin Already Factoring in the Upcoming Halving?
According to Fred Thiel, CEO of Marathon Digital Holdings, the largest American cryptocurrency mining company, the upcoming Bitcoin halving may already be partially reflected in current prices. The halving, which involves reducing rewards for miners and decreasing the coin’s supply, is set to occur in mid-April.
The Impact of ETF Approval on Bitcoin’s Price
Thiel attributes the recent surge in Bitcoin to record-high values of partially approved spot ETFs, which attracted increased capital to the market. While the approval of ETFs played a significant role in the current dynamic price changes, Thiel suggests that potential further growth of Bitcoin may be possible even post-halving.
The Bitcoin Halving Process
Before the halving, there is an expected reduction in Bitcoin supply by around 450 BTC per day and a halving of block production rewards, from 6.25 BTC to 3.125 BTC. Thiel estimates that post-halving, the cost of mining Bitcoin for Marathon would be approximately $46,000 per Bitcoin to maintain profitability.
Current Market Values
The current price of Bitcoin is around $68,826, and the total cryptocurrency market value reaches $2.57 trillion. The value of MARA Marathon’s shares has declined by over 20% since the beginning of the year. Nonetheless, Thiel expressed enthusiasm regarding the upcoming halving, indicating a positive outlook towards price increases before this significant event.
Advertisement:
