In a recent interview with CNBC, Fred Thiel, the CEO of Marathon Digital Holdings (NASDAQ: MARA), expressed a positive perspective on Bitcoin’s future. He highlighted the increasing interest from institutions and a supportive regulatory backdrop that could drive Bitcoin’s value to unprecedented levels.
Institutional Interest in Bitcoin on the Rise
Thiel downplayed the significance of the recent Bitcoin halving event, stating, “I think the halving had zero effect.” Instead, he credited the surge in Bitcoin’s price to the launch of spot exchange-traded funds (ETFs) earlier in the year. “In January, the launch of these ETFs marked the beginning of some institutional interest,” he observed. Initially dominated by retail investors, these ETFs soon attracted the attention of institutional players.
Institutions Eager to Invest in Bitcoin
Thiel noted a significant shift as institutional investors, including pension funds, began purchasing ETFs and Bitcoin-related equities such as Marathon Digital’s stock and MicroStrategy’s shares. He also pointed out the potential influence of political developments on Bitcoin’s market dynamics. “With the election, Donald Trump ran on a pro-Bitcoin platform that included ideas like a Bitcoin strategic reserve and mining in the US,” Thiel remarked. Such policies could foster a more favorable regulatory environment in the United States.
Anticipated Regulatory Improvements
Thiel elaborated on how these political stances might improve the regulatory landscape for Bitcoin and cryptocurrencies in general. “There’s a growing belief that the regulatory environment for Bitcoin will become more favorable, prompting the US to invest more significantly in Bitcoin,” he explained. This shift could encourage other nations to adopt similar policies, spurring global adoption of Bitcoin.
Strong Market Dynamics and Future Prospects
The CEO also highlighted the robust market dynamics that continue to absorb selling pressure from long-term holders. “Every Bitcoin purchased was in profit, leading some long-term holders to liquidate assets to secure profits,” he said. Despite this, he emphasized the market’s resilience, noting, “There is so much demand that it just keeps absorbing the supply.”
Reduced Volatility and Institutional Demand
Addressing concerns about Bitcoin’s notorious volatility, Thiel expressed optimism that significant drawdowns might be reduced in the near future. “The volatility of past years, where prices would peak and then see a 20% or 30% drawdown, may be a thing of the past,” he asserted. He anticipates that institutional investors are ready to enter the market with vigor. “I think what we’re going to see is institutions just waiting to buy up Bitcoin,” Thiel predicted.
Corporate Strategies and Market Impact
Thiel cited recent corporate actions as evidence of this trend. “Look at MicroStrategy—they’re issuing a $3 billion bond and buying Bitcoin aggressively,” he stated. “We raised a $1 billion bond at a 0% coupon the same week as Michael Saylor did, and we acquired hundreds of millions of dollars of Bitcoin.” Thiel emphasized that this approach is gaining momentum: “Many companies are starting to adopt this strategy.”
Conclusion: A Bullish Outlook on Bitcoin
Concluding his insights, Thiel expressed confidence in the upward trajectory of Bitcoin’s price. “Sellers are selling into a market with ample demand, and I believe we will continue to see Bitcoin’s price trend upwards, despite fluctuations,” he said.
Notably, Cantor Fitzgerald recently revised its price target for MARA, increasing it from $33 to $42. This adjustment followed Marathon Holdings’ completion of a significant $1 billion convertible note offering. With $980 million raised, Marathon used $199 million to repurchase $222 million in principal of its 2026 convertible notes. With $781 million in remaining proceeds, the company plans to purchase additional Bitcoin, employing a strategy akin to MicroStrategy (MSTR). However, unlike MicroStrategy, which focuses solely on capital market strategies, Marathon operates the largest publicly-traded Bitcoin mining operation, a key differentiator highlighted by analysts at Cantor.
At press time, Bitcoin traded at $92,531.
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