In his statement, Marathon Digital CEO Fred Thiel looked at the reasons why Bitcoin price is unable to recover.
Bitcoin faces significant challenges. Now in its third worst week of the year, BTC is down more than 4.5%.
Despite this decline, BTC is up 38% year-to-date. However, the recent market trend in June shows signs of capitulation similar to the decline recorded in early May.
Fred Thiel, CEO of Marathon Digital Holdings (MARA), gave information about the current situation of the cryptocurrency market. Thiel explains several factors contributing to downward price pressure on Bitcoin.
According to the CEO, German government sold approximately 50,000 BTC and the distribution of Bitcoin from Mt. Gox ​will create supply shocks.
Also affecting the market are these macroeconomic expectations and the fact that mining companies are sell a significant portion of their Bitcoin to finance operations and business expansion.
The market has seen outflows of approx 1.2 billion USD from ETFs, indicating reduced demand. Some analysts predict that Bitcoin could find support at $57,000, but it remains to be seen whether it can break above the $68,000 to $69,000 threshold.
As CEO of Marathon Digital Holdings, Thiel discussed the impact of Bitcoin’s performance on the company’s stock. Marathon Digital is directly affected by cryptocurrency volatility.
Looking ahead, Thiel mentioned 2024 presidential election upcoming and its potential impact on the cryptocurrency market. He observed former President Trump considers himself a Bitcoin supporter and advocates more domestic Bitcoin mining.
Opposite, Biden administration has a hostile stance towards Bitcoin, but there are signs of a change due to a significant voter base interested in the cryptocurrency. Thiel said there needs to be bipartisan support in Congress for Bitcoin and cryptocurrency legislation.
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