Marathon Holdings CEO Fred Thiel Predicts Steady Bitcoin Growth Driven by Institutional Demand and Positive Regulatory Signals

Fred Thiel, the CEO of Marathon Holdings, believes Bitcoin's price is set to rise, even if there are some ups and downs along the way. He points to strong demand from institutions and positive regulatory signals as the main reasons for this growth, rather than the halving event.

During a recent appearance on CNBC's Street Signs, Thiel shared that Bitcoin's recent momentum comes from increasing interest from institutional investors. He noted that favorable political developments and strategic investments are also playing a big role.

Earlier this year, the launch of Bitcoin ETFs attracted a lot of retail investors. But soon after, institutions like pension funds and corporations jumped in, investing heavily in Bitcoin-related stocks.

Political support has also been a game changer. President-elect Donald Trump has taken a pro-Bitcoin stance, emphasizing U.S.-based mining and Bitcoin reserves. This has fueled optimism for a favorable regulatory environment.

Thiel thinks these developments could inspire other countries to follow suit, which would boost Bitcoin's long-term potential.

The market demand remains strong. Long-term holders are cashing in on some profits, but that’s being balanced out by new buying from both institutions and retail investors.

Companies like MicroStrategy are making significant Bitcoin purchases, using billion-dollar bonds at low interest rates to fund their acquisitions.

Unlike past cycles that saw sharp corrections, Thiel expects Bitcoin's future to be marked by less volatility and steady growth due to this strong market demand.

He also mentioned that “every single Bitcoin purchased was recently in profit,” showing just how strong the current market is.

While price fluctuations will still happen, the overall trend for Bitcoin is likely to keep moving upward. This growth is supported by a growing base of institutional buyers who help stabilize the market.

Thiel believes that Bitcoin's extreme volatility, which used to include sharp spikes and significant drops of 20-30%, may be a thing of the past, at least for now.

He revealed that Marathon recently raised a billion-dollar bond at zero percent interest, similar to MicroStrategy. They’re using those funds to acquire a lot of Bitcoin. Thiel stated, “Anyone who’s selling is selling into a market where there’s ample demand,” emphasizing his confidence in Bitcoin's upward path.