The Impact of Spot Bitcoin ETF Approvals on the Crypto Market

The Impact of Spot Bitcoin ETF Approvals on the Crypto Market

The boss of Marathon, America’s largest crypto mining firm, Fred Thiel, highlighted the significance of spot Bitcoin ETF approvals in accelerating the post-halving rally. According to Thiel, the ETF approval has successfully attracted capital into the market, pushing ahead the potential price appreciation that would typically occur three to six months after the halving event.

Thiel further elaborated that the halving event would reduce the supply of Bitcoin by approximately 450 coins per day, thus, having a minor impact on prices. As a mining firm, Marathon is elated about the pre-halving rally, deviating from the usual trend observed in previous market cycles. Thiel estimated the firm’s break-even rate to be around $46,000 per BTC to maintain profitability post-halving.

Bitcoin mining expert Jaran Mellerud projected that the hash rate would not experience a significant decline after the halving event. He emphasized that halvings should be viewed as temporary pauses in the hash rate’s continuous upward trajectory, rather than events causing a drop in the hash rate. Mellerud reiterated his belief in a forthcoming bull market, pointing out that demand, not the slight supply reduction, would be the primary factor driving the price surge.

While Bitfinex predicted that the post-halving bull market could propel Bitcoin prices to $150,000, the current market situation indicates a different reality. Bitcoin prices have surged by 65% in the first four months of the year leading up to the halving, scheduled around April 20. Despite this, BTC prices have remained rangebound in the upper $60K range since early March, signaling a period of consolidation.

Investor and analyst Oliver Isaacs noted that BTC reserves on exchanges were at a six-year low, hinting at increasing demand. Additionally, several countries are on the verge of allowing Bitcoin ETPs, further boosting adoption. However, at the time of writing, Bitcoin was trading at $69,200, reflecting a 3% decline for the day and maintaining its sideways movement within the established channel.

While spot Bitcoin ETF approvals have accelerated the post-halving rally and generated significant interest in the market, the actual impact on Bitcoin prices remains to be seen. The upcoming halving event, coupled with the evolving market dynamics and regulatory developments, will shape the future trajectory of the crypto market.

Crypto

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