Samson Mow On Bitcoin Halving: Brace For Supply Shock, Omega Candle In Sight
24 April 2024 - 1:00AM
NEWSBTC
Samson Mow, the chief executive at Jan3, recently spoke to Forbes
about the latest Bitcoin halving and its potential to catalyze what
he refers to as the “Omega candles” – significant price movements
that could elevate Bitcoin to the $1 million mark. According to
Mow, halvings ensure a controlled distribution of Bitcoin,
maintaining scarcity and value. Related Reading: Standard Chartered
Reaffirms $150,000 Bitcoin Price Target By Year-End The Mechanics
Of Halving And Its Market Implications Samson Mow detailed in the
interview with Forbes the mechanics behind Bitcoin halvings—a
critical process built into Bitcoin’s framework by its creator,
Satoshi Nakamoto. Omega Candle in sight! Omega Candle in sight! The
#halving is proof that this system works, but it also means a
supply shock is coming for any parties looking to buy large amounts
of #Bitcoin. Check out @Excellion‘s comments on the recent halving
in this @Forbes article by… pic.twitter.com/xp23ulxQIJ — JAN3
(@JAN3com) April 22, 2024 This mechanism is designed to halve the
block rewards given to miners every 210,000 blocks, or
approximately every four years, reducing the reward by 50%. So far,
the most recent halving has reduced the reward for mining from 6.25
BTC to 3.125 BTC per mined block. However, initially, miners
received 50 BTC per block. Still, due to the halvings, this amount
has decreased over time to manage inflation and extend the mining
lifecycle of Bitcoin’s capped supply of 21 million coins. If not
for these halvings, the total supply of Bitcoin would have already
been mined. In the same discussion, Mow highlighted the significant
impact of newly approved spot-based Bitcoin ETFs, which received
SEC approval earlier this year. He believes these ETFs, combined
with the reduced block rewards from the halving, could precipitate
a “supply shock” in the BTC market. Mow further speculated on the
occurrence of what he calls “Omega candles”—large price movement
events in the Bitcoin market. He noted that even before the recent
halving, the daily demand for Bitcoin was significantly
outstripping supply, predicting these Omega candles as almost
certain events due to their high volatility and substantial price
changes. Mow views these developments as marking the beginning of a
new era for Bitcoin, coinciding with its next, or fifth, halving in
the coming four years. Bitcoin Bright Future And Market Performance
Regarding positive sentiment on Bitcoin, Geoff Kendrick of Standard
Chartered also supports this bullish outlook, projecting
substantial inflows into BTC akin to those experienced by gold with
the advent of gold ETFs. Kendrick suggests that the maturation of
the spot ETF market could channel between $50 and $100 billion into
BTC. However, despite the post-halving price not reaching the
anticipated heights, BTC has demonstrated resilience and potential
for considerable growth. Meanwhile, analysts remain confident,
predicting significant long-term value increases. For instance,
Michael Sullivan’s analysis suggests a possible reach of $245,000
by 2029 if BTC maintains a 30% compound annual growth rate,
underlining the optimistic projections shared by several market
experts. Related Reading: Bitcoin Price Extends Increase, Why Dips
Turned Attractive In Short-Term This optimism is further supported
by recent trends, including a 7.1% increase in Bitcoin’s price over
the last week, which indicates a possible recovery on the
horizon. Featured image from Unsplash, Chart from TradingView
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