According to U.Today, Samson Mow, the CEO of Jan3, recently discussed the potential impact of Bitcoin halving on the cryptocurrency's supply and price. He anticipates a supply shock and the emergence of 'Omega candles', which could potentially push Bitcoin's value to $1 million.
Mow explained the concept of Bitcoin halving to Forbes. The total Bitcoin supply of 21 million coins is gradually introduced to the market by miners in the form of block rewards. This system was designed by Bitcoin's anonymous creator, Satoshi Nakamoto, to occur every four years, with each halving reducing the rewards by 50%. Halvings occur after every 210,000 blocks are generated by miners. This mechanism was implemented to prevent an oversupply of Bitcoin in the market. Initially, miners earned 50 BTC for each new block. Without the four previous halvings, all 21 million Bitcoins would have already been mined.
The CEO further highlighted that the approval of spot-based Bitcoin ETFs by the SEC in January sparked new demand for Bitcoin. Companies like BlackRock, Fidelity, Ark Invest, and VanEck were among those who received approval. Mow believes that the combination of reduced block rewards due to halving and the increased demand from these ETFs could lead to a Bitcoin supply shock.
Mow also predicted the occurrence of 'Omega candles' in the future. These are large trading candles that signify high volatility and significant price changes. He stated that the daily demand for Bitcoin was already 5-10 times the supply before the halving, making the emergence of Omega candles seem inevitable.
Bitcoin halvings are generally seen as bullish indicators for the cryptocurrency market. They not only prove the effectiveness of the Bitcoin protocol but also contribute to Bitcoin's scarcity, drawing it closer to gold. Since the recent halving, Bitcoin has seen an 8.5% increase and is currently trading at $66,200.