- The final Bitcoin halving occurred in April when the block reward dropped from 6.25 Bitcoin to three.125 Bitcoin
- Jesse Myers mentioned Bitcoin’s worth must go greater for a “supply-demand worth” 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 principle story” for Bitcoin’s current worth rally, says Onramp Bitcoin’s co-founder.
In a put up on X, Jesse Myers mentioned the principle motive 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. In consequence, every new block turns into more durable to unravel with a decrease reward.
A discount in Bitcoin provide usually means a rise within the worth of Bitcoin. The subsequent Bitcoin halving is predicted to happen someday in 2028.
Based on Myers, a “provide shock has accrued,” that means “there’s not sufficient provide out there at present costs to fulfill demand,” including {that a} “supply-demand worth equilibrium should be restored.”
Nevertheless, the one method Myers believes it will occur “is for the value to go greater, which is able to flywheel into mania and a bubble, however that’s how this factor works.”
Put up-halving bubbles
Supplying a chart, Myers indicated that the market is at present at the beginning of the post-halving bubble. Based mostly on his knowledge, Bitcoin’s worth will proceed its upward trajectory earlier than peaking to new highs and dropping to present ranges.
“It sounds loopy to say there shall be a dependable, predictable bubble each 4 years,” mentioned Myers. “However then, there’s by no means been an asset on the planet the place new provide creation is halved each 4 years.”
Put up-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. Based mostly 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 following 5 years.
