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Bitcoin maximalist and chief executive at Jan3 Samson Mow has spoken to Forbes about the halving that is now in the rearview, the Bitcoin supply shock that he expects in the near future and about the ultimate Omega candle that will perhaps push BTC to $1 million.
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
Bitcoin halving and "supply shock"
Samson Mow explained to Forbes how halvings work – the total Bitcoin supply of 21,000,000 coins is being gradually “transferred” by miners onto the market in the form of block rewards. The mysterious Bitcoin creator Satoshi Nakamoto built that into the system, programming halvings to happen once in every four years and those rewards to be cut by 50%. A halving takes place after every 210,000 blocks are generated by miners.
Halvings were made in order to prevent the flooding of the cryptocurrency market with Bitcoin via nonstop BTC issuance. When Bitcoin only started, miners earned 50 BTC for each new block. Without the four previous halvings, all of the 21 million Bitcoins would have been extracted already.
Samson Mow stressed, talking to Forbes, that spot-based Bitcoin ETFs ignited new demand for BTC in January this year, when they got SEC’s approval – BlackRock, Fidelity, Ark Invest, VanEck, etc. Together, the block reward decline done by the halving and these spot ETFs are likely to trigger a Bitcoin supply shock, the Jan3 chief believes.
"Omega candles inevitable"
This led him to reckon that the Bitcoin Omega candle or even candles are now very likely to happen in the future: “Even before the halving, daily demand was 5-10 times that of supply, so Omega Candles seem inevitable.”
Omega candles are big trading candles, according to Mow’s explanation, “that means high volatility and big changes in price.”
For many other holders, the Bitcoin halving signifies BTC entering its next epoch – the fifth one (with the fifth halving due in four years).
Overall, halvings are bullish not only for Bitcoin but for the cryptocurrency space in general. They prove that the BTC protocol works. They perform Bitcoin supply tightening, adding to the coin’s scarcity and making it closer to gold. So far, the world’s leading cryptocurrency has staged a 8.5% increase since the halving day. Bitcoin is trading at $66,200.