Originally published on: November 12, 2024
Following Donald Trump’s victory in the US election, many speculated that his Bitcoin-friendly policies were responsible for the recent surge in the cryptocurrency’s price. However, according to Onramp Bitcoin co-founder Jesse Myers, there is more to the story.
Myers pointed to the post-halving supply shock as the main driving force behind Bitcoin’s price increase. The halving in April reduced block rewards, making it harder to mine new coins. This scarcity has led to a supply shock, with not enough Bitcoin available to meet the increasing demand.
The introduction of Bitcoin exchange-traded funds (ETFs) earlier this year has also contributed to the surge in demand. Inflows into US Bitcoin ETFs on Nov. 11 were significantly higher than the amount of Bitcoin mined that day, indicating strong investor interest in the cryptocurrency.
Analysts believe that Bitcoin’s market cap, currently at $1.6 trillion, still has room to grow compared to assets like gold, which added $6 trillion in market cap over the past year. With only a limited supply of Bitcoin available for mining, the price is expected to continue rising.
Experts like James Checkecho and Anthony Scaramucci predict that Bitcoin’s price will go even higher, with Scaramucci suggesting that now is still an early stage for investing in the cryptocurrency. As more countries establish strategic Bitcoin reserves and institutional investors allocate assets to Bitcoin, the demand for the cryptocurrency is expected to remain strong.
With just 1.2 million BTC left to be mined and 94% of all Bitcoin already in circulation or lost, the pressure on supply and demand is only expected to increase, leading to further price growth in the future.
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