- The final Bitcoin halving passed off in April when the block reward dropped from 6.25 Bitcoin to three.125 Bitcoin
- Jesse Myers mentioned Bitcoin’s worth must go larger for a “supply-demand price” steadiness to occur
- When that happens, the market will “flywheel into mania and a bubble,” which occurred within the 2012, 2016, and 2020 Bitcoin halving occasions
Donald Trump’s re-election into the White Home isn’t “the main story” for Bitcoin’s current worth rally, says Onramp Bitcoin’s co-founder.
In a publish on X, Jesse Myers mentioned the primary cause is that the market is on the “6+ months post-halving” mark.
Going down each 4 years, the final Bitcoin halving occurred in April when the block reward dropped from 6.25 Bitcoin to three.125. Consequently, every new block turns into tougher to resolve with a decrease reward.
A discount in Bitcoin provide usually means a rise within the worth of Bitcoin. The subsequent Bitcoin halving is anticipated to happen someday in 2028.
In line with Myers, a “supply shock has accumulated,” which means “there’s not enough supply available at current prices to satisfy demand,” including {that a} “supply-demand price equilibrium must be restored.”
Nevertheless, the one approach Myers believes this may occur “is for the price to go higher, which will flywheel into mania and a bubble, but that’s how this thing works.”
Submit-halving bubbles
Supplying a chart, Myers indicated that the market is presently at first of the post-halving bubble. Primarily based on his knowledge, Bitcoin’s worth will proceed its upward trajectory earlier than peaking to new highs and dropping to present ranges.
“It sounds crazy to say there will be a reliable, predictable bubble every 4 years,” mentioned Myers. “But then, there’s never been an asset in the world where new supply creation is halved every 4 years.”
Submit-halving bubbles occurred within the 2012, 2016, and 2020 Bitcoin halvings, mentioned Myers.
The current Bitcoin worth rally comes amid Trump’s re-election into the White Home. Primarily based on his marketing campaign path within the lead-up to election day, Trump got here throughout as pro-crypto in comparison with present Vice President Kamala Harris.
Final week, Senator Cynthia Lummis additionally reaffirmed plans that the US goes to construct a strategic Bitcoin reserve. If handed, the senator’s Bitcoin Act would suggest directing the US Treasury to purchase a million over the subsequent 5 years.
