【BTC supply and demand】Economic explanation of BTC halving and price

➤General supply curve and demand curve

Those who have a little basic knowledge of economics know that the equilibrium price is at the intersection of the supply curve and the demand curve.

Generally speaking, the demand curve slopes downward to the right. As the price drops, the willingness to buy increases; and as the price rises, the willingness to buy decreases.

Generally speaking, the supply curve slopes upward to the right. As the price drops, the willingness to sell decreases; as the price rises, the willingness to sell increases.

➤Medium-term BTC supply and demand curve

However, for BTC, there is a difference.

In the medium term, note that it is medium term. The supply curve of the entire industry is almost a vertical straight line. Because for a period of time, the output of BTC in the entire industry is basically fixed.

➤BTC supply and demand curve before and after halving

However, after BTC halved, the supply curve moved to the left. Assuming that demand remains unchanged (in fact, demand may be increasing), the equilibrium point moves to the upper left, which means that the equilibrium price has risen.

This is one of the economic explanations for the price increase caused by halving.

So, please believe that $73,000 is not the top of this round :)