Marathon Holdings MARA CEO, Fred Thiel believes Bitcoin BTC/USD will not see the volatility of the past years, citing multiple factors for his hypothesis.
What Happened: In an appearance on CNBC's Street Signs show on Monday, Thiel noted that the cryptocurrency’s recent momentum stems from increasing institutional interest, favourable political signals and strategic investments rather than traditional factors like the halving.
Thiel highlighted how the launch of Bitcoin ETFs earlier this year initially attracted retail investors, but institutions, including pension funds and corporations, soon followed, pouring capital into Bitcoin-related equities.
Political support, notably from president-elect Donald Trump‘s pro-Bitcoin stance emphasizing U.S.-based mining and Bitcoin reserves, has amplified optimism for a favourable regulatory environment.
Thiel believes these developments may drive other nations to adopt similar strategies, boosting Bitcoin’s long-term potential.
Market demand remains strong, with long-term holders liquidating some positions for profit being offset by institutional and retail buying.
Companies like MicroStrategy MSTR and others have aggressively purchased Bitcoin, supported by billion-dollar bonds at low interest rates.
Also Read: Why Bitcoin’s Rally Is Stalling Below $100,000
Why It Matters: Unlike previous cycles marked by sharp corrections, Thiel expects Bitcoin’s future to be defined by reduced volatility and sustained growth due to strong market demand.
He noted that "every single Bitcoin purchased was recently in profit," showing the strength of the current market.
While price fluctuations remain inevitable, general trend for Bitcoin will continue to move upward, supported by a growing base of institutional buyers stabilizing the market.
Thiel suggests that Bitcoin’s extreme volatility, characterized by sharp peaks and significant drawdowns of 20-30%, may be a thing of the past, at least in the near term.
Thiel revealed that Marathon raised a billion-dollar bond at zero percent interest alongside MicroStrategy, using the funds to acquire significant Bitcoin holdings. He stated, “Anybody who’s selling is selling into a market where there’s ample demand,” further emphasizing his confidence in Bitcoin’s upward trajectory.
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