Donald Trump’s US election victory is unlikely to be the “main story” behind Bitcoin’s recent pump – instead, the analyst points to the 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 topic here.” he said Onramp Bitcoin co-founder Jesse Myers in a November 11 post on X.
“The main story is that we are over 6 months after the halving.”
Bitcoin’s (BTC) April halving lowered block rewards from 6.25 BTC to 3.125 BTC, meaning each subsequent block becomes more tough to solve for a smaller reward.
He added that this meant there was a supply shock: “At current prices, there is not enough supply to meet demand” and the price balance between supply and demand must be restored.
“The only way to do that is to raise the price, which will lead to a mania and a bubble, but that’s how it works.”
He added that it is crazy to say that there will be a certain and predictable bubble every four years, but there has never been an asset in the world where the creation of novel supply halved every four years.
“The result is a post-halving bubble,” he added, emphasizing that this had happened before after the halvings in 2012, 2016 and 2020, and now it is happening again and prices will go much higher.
Source: Jesse Myers
Onchain Analyst James Check it happened again sentiment comparing Bitcoin’s market cap to that of gold, which has brought in about $6 trillion over the past year but has brought “hundreds of billions of new and recycled supplies to the market.”
Bitcoin has a market capitalization of just $1.6 trillion and is “absolutely rare for holders who have been through hell multiple times,” so he predicted its price would rise.
Related: Bitcoin reaches novel high of 85,000. dollars, and to the BTC record of 100,000. dollars remained only 17%.
On November 12, American financier Anthony Scaramucci he suggested while also stating to those who don’t have much time on Bitcoin anymore, “It may seem like you missed it, but you didn’t. It’s early.
He was confident that the United States would establish a strategic Bitcoin reserve and that other countries would follow suit with institutional asset allocators and managers.
As of today, 94% of all existing Bitcoins are already in circulation or have been lost, meaning there are only about 1.2 million BTC left to be mined, putting further pressure on supply and demand.
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