Donald Trump’s victory at the United States election is not likely “the main story” behind Bitcoin’s recent pump — with an analyst pointing instead to a post-halving supply shock.
“If you’re wondering what’s happening with #Bitcoin… Yes, the incoming Bitcoin-friendly administration has provided a recent catalyst… But, that’s not the main story here,” said Jesse Myers, co-founder of Onramp Bitcoin in a blog post published on X Nov. 11,
“The main story here is that we are 6+ months post-halving.”
Bitcoins (BTC) halving in April Reduce block rewards to 3,125 BTC from 6,25 BTC. Every block will be harder to crack for less money.
This means that he added: supply shock The amount of money that has been accumulated “There’s not enough supply available at current prices to satisfy demand,” It is important to restore the equilibrium between supply and demand.
“The only way to do that is for the price to go higher, which will flywheel into mania and a bubble, but that’s how this thing works.”
The professor said that while it may sound crazy to predict a bubble in every four-year period, there have never been any assets where the creation of new stock is cut by half every four-years.
“A post-halving bubble is the result,” He added that it happened before and after halvings In 2012, 2016 and 2020 it happened again and the prices are going to go up.
Source: Jesse Myers
James Check, Onchain Analyst echoed The sentiment that compares Bitcoin’s value to gold, which added $6 trillion in the last year but hasn’t “hundreds of billions of new and recycled supply coming to market.”
Bitcoin has a market capitalization of $1.6 trillion. “absolutely scarce with holders who have been through hell many times,” He predicted that it would go even higher.
Related: Bitcoin hits new $85K high, with just 17% left for BTC $100K record
The American financier Anthony Scaramucci was arrested on Nov. 12. hinted At the same time, those who are not yet familiar with Bitcoin should be told this. “It may feel like you missed it, but you didn’t. It’s early.”
He is confident that other countries will follow the US in creating a Bitcoin strategic reserve, as well as institutional asset managers and allocators.
As of today 94% of the Bitcoins in existence have already been lost or are in circulation. This means that there is only 1.2 Million BTC remaining to mine, further increasing pressure on demand and supply.
Magazine: BTC’s ‘incoming’ $110K call, BlackRock’s $1.1B inflow day, and more: Hodler’s Digest
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Source: cointelegraph.com
