- The final Bitcoin halving occurred in April when the block reward dropped from 6.25 Bitcoin to three.125 Bitcoin
- Jesse Myers stated Bitcoin’s value must go increased 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 House isn’t “the main story” for Bitcoin’s latest value rally, says Onramp Bitcoin’s co-founder.
In a publish on X, Jesse Myers stated the primary cause is that the market is on the “6+ months post-halving” mark.
Taking place each 4 years, the final Bitcoin halving occurred in April when the block reward dropped from 6.25 Bitcoin to three.125. As a end result, every new block turns into tougher to resolve with a decrease reward.
A discount in Bitcoin provide sometimes means a rise within the value of Bitcoin. The subsequent Bitcoin halving is anticipated to happen someday in 2028.
According to 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.”
However, the one manner Myers believes it will occur “is for the price to go higher, which will flywheel into mania and a bubble, but that’s how this thing works.”
Post-halving bubbles
Supplying a chart, Myers indicated that the market is at the moment firstly of the post-halving bubble. Based on his knowledge, Bitcoin’s value 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,” stated Myers. “But then, there’s never been an asset in the world where new supply creation is halved every 4 years.”
Post-halving bubbles occurred within the 2012, 2016, and 2020 Bitcoin halvings, stated Myers.
The latest Bitcoin value rally comes amid Trump’s re-election into the White House. 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.
Last week, Senator Cynthia Lummis additionally reaffirmed plans that the US is going 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.
