• The final Bitcoin halving passed off in April when the block reward dropped from 6.25 Bitcoin to three.125 Bitcoin
• Jesse Myers mentioned Bitcoin’s price 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 Home isn’t “the main story” for Bitcoin’s current price rally, says Onramp Bitcoin’s co-founder.

In a put up on X, Jesse Myers mentioned the principle cause 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. Because of this, every new block turns into more durable to resolve with a decrease reward.

A discount in Bitcoin provide usually means a rise within the price of Bitcoin. The following Bitcoin halving is predicted to happen someday in 2028.

In line with Myers, a “supply shock has accumulated,” that means “there’s not enough supply available at current prices to satisfy demand,” including {that a} “supply-demand price equilibrium must be restored.”

Nevertheless, the one means 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.”

Publish-halving bubbles

Supplying a chart, Myers indicated that the market is presently firstly of the post-halving bubble. Based mostly on his information, Bitcoin’s price 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,” mentioned Myers. “But then, there’s never been an asset in the world where new supply creation is halved every 4 years.”

Publish-halving bubbles occurred within the 2012, 2016, and 2020 Bitcoin halvings, mentioned Myers.

The current Bitcoin price 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 subsequent 5 years.