Crypto NewsBitcoinCEO of Marathon, the World's Largest Bitcoin Mining Company, Explains Why Bitcoin...

CEO of Marathon, the World’s Largest Bitcoin Mining Company, Explains Why Bitcoin Failed to Rebound

In his statement, Marathon Digital CEO Fred Thiel examined the reasons why the Bitcoin price could not recover.

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Bitcoin faces significant challenges. Currently in its third worst week of the year, BTC is down over 4.5%.

Despite this decline, BTC has increased by 38% year-to-date. However, recent market trends in June showed signs of capitulation similar to the decline observed in early May.

Fred Thiel, CEO of Marathon Digital Holdings (MARA), gave information about the current situation of the cryptocurrency market. Thiel explained several factors contributing to the downward pressure on Bitcoin. According to the CEO, the German government sold approximately 50,000 BTC and Mt. Bitcoin distribution expected from Gox bankruptcy creates supply shocks. Also influencing the market are macroeconomic expectations and the fact that miners are selling a significant portion of their Bitcoin to fund their operations and expansion.

Thiel noted that Bitcoin's correlation with risky assets is another factor in its recent performance. The market has seen an outflow of approximately $1.2 billion from ETFs, indicating reduced demand. Some analysts predict that Bitcoin may find support at the $57,000 level, but it remains to be seen whether it can surpass the $68,000 to $69,000 threshold.

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As CEO of Marathon Digital Holdings, Thiel discussed the impact of Bitcoin's performance on the company's shares. Marathon Digital, a company that mines digital assets, especially Bitcoin, is directly affected by the volatility of cryptocurrencies. Thiel said it is important to maintain a strong balance sheet and diversify business activities to reduce risks associated with Bitcoin's volatility.

Looking ahead, Thiel addressed the upcoming 2024 presidential election and its potential impact on the cryptocurrency market. He observed that former President Trump positioned himself as pro-Bitcoin and advocated for more domestic Bitcoin mining. In contrast, the Biden administration has taken a hostile stance towards Bitcoin, but there are signs of a shift given the significant voter base interested in cryptocurrencies. Thiel said bipartisan support is needed in Congress for Bitcoin and crypto legislation.

*This is not investment advice.

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