Bitcoin has been surging since Donald Trump’s surprising win, rising by 21% in the last 7 days and hitting a new ATH.
For most people, Donald Trump’s win is the obvious explanation for Bitcoin’s new success. However, some believe other factors are pushing Bitcoin to new heights. Onramp Bitcoin co-founder Jesse Myers shared a different perspective on Bitcoin’s recent surge, and it was rather interesting.
Meyers shared in a recent X post, “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. The main story here is that we are 6+ months post-halving.”
The Bitcoin halving takes place every four years. It typically involves reducing block rewards. The last halving occurred in April this year, reducing rewards from 6.25 BTC to 3.125 BTC.
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.
The main story here is that we are 6+ months post-halving.
And that means a supply shock has… pic.twitter.com/XkwPoPxrj2
— Jesse Myers (Croesus 🔴) (@Croesus_BTC) November 11, 2024
Meyers attributes recent price performance to a supply shock. He wrote, “There’s not enough supply available at current prices to satisfy demand,” and supply-demand price equilibrium must be restored.”
Long-Term Growth in View
In his post, Meyers claimed we’ve seen this cycle before, citing post-halving experiences in 2012, 2016, and 2020. Interestingly, other prominent analysts like American financier Anthony Scaramucci believe Bitcoin is up for a good run. Scaramucci claims everyone is still early to the Bitcoin party, even though it does not seem so.
He offered several reasons to bet on Bitcoin’s long-term performance. The American financier sees the US setting up a Bitcoin reserve, inspiring other countries to do the same. Interestingly, 94% of Bitcoins are already in circulation. This means there are only 1.2 million BTC to be mined, leaving room for supply and demand pressure.
