- Donald Trump’s victory isn’t the only Bitcoin booster
- Analysts point to the halving effect after half a year
- And the supply shock from buying Bitcoin ETFs
- In addition, more stimulus is likely in the future if the U.S. adopts the Bitcoin Reserve
We are seeing a rapid rise in the crypto market and Bitcoin in particular, apparently associated with Donald Trump’s victory in the US presidential election.
However, some analysts insist that we should not see the only stimulus for growth in this event and point to the six-month period after the last halving and the supply shock we saw as a result of record purchases of Bitcoin ETFs.
Additionally, this may not be the last incentive for systematic demand and price growth if the US adopts the Bitcoin Reserve and the rest of the world follows.
More About Analysts’ Remarks on Bitcoin’s Rise
It is worth noting right away that Donald Trump’s victory has indeed boosted the crypto industry and this correlation cannot be denied, regardless of how long it will last and how to evaluate it, on which there may be different opinions.
However, some analysts prefer to remind us that Donald Trump’s victory alone has contributed to Bitcoin’s rise, but rather several factors have come together to create such a rise we see now.
In particular, Onramp Bitcoin co-founder Jesse Myers said:
“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 you can really see the sobering stance in his words, as the reward for blocks is now 3.125 BTC instead of 6.25 BTC, and on its own, this is already a classic stimulus to boost Bitcoin prices.
If we add to that the supply shock experienced by the market due to the record and systematic purchases by Bitcoin ETFs, as we saw on Nov 11 buying of 13 940 BTC but 450 BTC mined, then the incentive for the price is heightened even more.
As Jesse Myers added:
“There’s not enough supply available at current prices to satisfy demand. The only way to do that is for the price to go higher, which will flywheel into mania and a bubble, but that’s how this thing works.”
In addition, he noted:
“It sounds crazy to say there will be a reliable and predictable bubble every four years, but there has never been an asset in the world where new supply creation is halved every four years. A post-halving bubble is the result.”
Onchain analyst James Check comparing Bitcoin to the $6T capitalization of gold gave his commentary, clearly hinting at a more global trend:
“Hundreds of billions of new and recycled supply coming to market. Absolutely scarce with holders who have been through hell many times, so it will go higher.”
American financier Anthony Scaramucci also commented, pointing to the same possible more global trend and fundamental shift:
“It may feel like you missed it, but you didn’t. It’s early.”
If we talk more about the globalization of this trend, it will also have to be ensured by a number of factors to start a chain reaction.
We don’t know yet if the U.S. will create a Bitcoin reserve, but many countries like El Salvador, and the Kingdom of Bhutan are already openly preparing for it.
More importantly, the main political and economic adversary of the US is China, which is already making huge initiatives to stimulate its own economy, and China’s investment funds are also buying Bitcoin actively.
If the U.S. makes Bitcoin a reserve, all those who have already been preparing for it may follow suit and thus justify their investments, and it may also be a reason for other countries to start buying.
Conclusions
All this could create a systematic demand for Bitcoin, with its obviously less supply than demand, and thus systematically move the price upwards regardless of the change of US administration now and in the future.
Of course, this is not guaranteed, while only one of the possible scenarios, but still quite realistic looking at the current trends. Let’s see how things develop further, stay tuned.
