In a recent interview with CNBC, Fred Thiel, CEO of Marathon Digital Holdings, shared his insights on Bitcoin’s future price trend.
According to Thiel, Bitcoin’s price volatility will decline in the coming years, paving the way for a stable and sustained upward trend driven by increasing institutional demand and adoption rates.
“The volatility of past years where you would hit a peak and then see a 20% or 30% drawdown, I think (they) are gone at least for the near term future. I think what we’re going to see is essentially institutions just waiting to buy up Bitcoin… I think that for the foreseeable future, we’ll continue to see bitcoin price move up, you know, up and down, up and down, but generally, the trend will be upwards,” Fred Thiel predicted in the interview.
Institutional Appetite for Bitcoin on the Rise
Recent months have seen a surge in institutional investment in cryptocurrencies, with Bitcoin being the primary target.
For instance, Thiel’s company Mara Holdings (formerly Marathon Digital) recently completed a $1 billion offering of 0% convertible senior notes due in 2030 to cover operational costs, including expanding its BTC holdings.
Utilizing proceeds from the $1 billion 0% convertible senior notes offering, the company invested $572 million in its quarterly Bitcoin acquisition, securing around 5,771 BTC for $95,554 per bitcoin.
Leading business intelligence firm MicroStrategy is another institution with a strong appetite for Bitcoin. The company’s numerous BTC shopping sprees have secured its position as one of the largest corporate holders of the cryptocurrency.
After its latest purchase of 51,780 worth $4.6 billion at an average cost of $88,627 per BTC, the intelligence company announced its plans to raise $2.6 billion from senior convertible notes at a 0% interest rate to further expand its Bitcoin holdings.
Not Left Behind: Pension Funds Enter the Bitcoin Bandwagon
Fred Thiel also noted in his CNBC appearance that pension funds are also dipping into the Bitcoin market, with some investing in Bitcoin Exchange-Traded Funds (ETFs). A notable example is the Michigan State Pension Fund’s decision to invest $6.6 million in 110,000 shares of the ARK 21Shares Bitcoin ETF.
Thiel cited an improving regulatory landscape, likely fueled by Donald Trump’s pro-bitcoin stance and the impending departure of SEC’s Gary Gensler, as a key driver of growing demand from both retail and institutional investors.
