Here are two Reasons Why Bitcoin May Attain a New ATH Soon
This analyst offered two possible reasons for the ongoing Bitcoin surge and hinted that it would continue in the coming days.
Bitcoin has set a new all-time high (ATH) at $89,700, driven by key factors that continue to impact its price trajectory. A well-respected analyst, Jersey Myers has provided insights into the dynamics fueling Bitcoin’s ascent, highlighting the post-halving supply constraints and political developments as central reasons for this surge.
The Post-Halving Supply Squeeze
According to Myers, the halving over six months ago remains a pivotal factor in Bitcoin’s price action. With each halving event, Bitcoin’s block rewards compensation miners receive for validating transactions are cut in half, reducing the rate at which new Bitcoin enters circulation. The supply squeeze has intensified as the halving’s effects accumulate over time, leading to the current shortage in available supply.
Myer explains that this “supply shock” is significantly driving Bitcoin’s price upward, as investor demand increasingly outpaces the limited availability of the cryptocurrency.
Historically, Bitcoin’s price pattern has demonstrated substantial gains in the months following each halving event, with Myer emphasizing that the fixed supply is a critical element underpinning Bitcoin’s long-term growth trajectory. As demand continues to grow while supply remains constrained, prices have naturally surged, leading up to this remarkable record high.
Favorable Regulatory and Political Developments
Political and regulatory factors significantly influence Bitcoin’s performance, according to Myers. With a more Bitcoin-friendly administration in power, investor confidence has increased, as there is an expectation that policies will favor cryptocurrency adoption and its integration into mainstream finance.
The shift in the political landscape has boosted market optimism, encouraging greater participation from both retail and institutional investors. As a result, the heightened demand has intensified Bitcoin’s supply-driven price pressures.
Additionally, ongoing discussions regarding potential spot Bitcoin ETFs have further enhanced positive sentiment. Approval of such financial products would likely provide greater access to Bitcoin, thereby driving demand and facilitating broader market adoption.
Jersey Myers emphasizes that Bitcoin’s all-time high (ATH) of $89,700 is not merely an anomaly but rather a consequence of consistent, predictable factors, such as the supply impact from the halving and supportive regulatory developments.
With these elements in play, Myers suggests that Bitcoin’s upward trend may persist, as these factors bolster long-term confidence in the cryptocurrency.
