- Written by: Rebecca Campbell
- Tue, 12 Nov 2024
- United Kingdom
The last Bitcoin halving took place in April when the block reward dropped from 6.25 Bitcoin to 3.125 Bitcoin Jesse Myers said Bitcoin’s price needs to go higher for a “supply-demand price” balance to happen When that occurs, the market will “flywheel into mania and a bubble,” which happened in the 2012, 2016, and 2020 […]The post Post-halving 2024 market is pushing Bitcoin’s price, not just Trump, says Onramp Bitcoin co-founder appeared first on CoinJournal.
Post-halving 2024 market is pushing Bitcoins price, not just Trump, says Onramp Bitcoin co-founder
- The last Bitcoin halving took place in April when the block reward dropped from 6.25 Bitcoin to 3.125 Bitcoin
- Jesse Myers said Bitcoins price needs to go higher for a supply-demand price balance to happen
- When that occurs, the market will flywheel into mania and a bubble, which happened in the 2012, 2016, and 2020 Bitcoin halving events
Donald Trumps re-election into the White House isnt the main story for Bitcoins recent price rally, says Onramp Bitcoins co-founder.
In a post on X, Jesse Myers said the main reason is that the market is at the 6+ months post-halving mark.
Taking place every four years, the last Bitcoin halving occurred in April when the block reward dropped from 6.25 Bitcoin to 3.125. As a result, each new block becomes harder to solve with a lower reward.
A reduction in Bitcoin supply typically means an increase in the price of Bitcoin. The next Bitcoin halving is expected to occur sometime in 2028.
According to Myers, a supply shock has accumulated, meaning theres not enough supply available at current prices to satisfy demand, adding that a supply-demand price equilibrium must be restored.
However, the only way Myers believes this will happen is for the price to go higher, which will flywheel into mania and a bubble, but thats how this thing works.
Post-halving bubbles
Supplying a chart, Myers indicated that the market is currently at the start of the post-halving bubble. Based on his data, Bitcoins price will continue its upward trajectory before peaking to new highs and dropping to current levels.
It sounds crazy to say there will be a reliable, predictable bubble every 4 years, said Myers. But then, theres never been an asset in the world where new supply creation is halved every 4 years.
Post-halving bubbles happened in the 2012, 2016, and 2020 Bitcoin halvings, said Myers.
The recent Bitcoin price rally comes amid Trumps re-election into the White House. Based on his campaign trail in the lead-up to election day, Trump came across as pro-crypto compared to current Vice President Kamala Harris.
Last week, Senator Cynthia Lummis also reaffirmed plans that the US is going to build a strategic Bitcoin reserve. If passed, the senators Bitcoin Act would propose directing the US Treasury to buy one million over the next five years.
The post Post-halving 2024 market is pushing Bitcoins price, not just Trump, says Onramp Bitcoin co-founder appeared first on CoinJournal.