One of my theories:
1. Halving primarily affects miners, who spend fiat for their electricity and receive BTC. (The first ever exchange of BTC for fiat was derived from the price of electricity used to mine it — or so I heard!) They start receiving less BTC and therefore are forced to sell it for more to compensate for their loss.
2. Perhaps psychological forces such as "hype" also affect the price. Halving means less new bitcoins, therefore bitcoins become more scarce. More scarcity => higher price per unit. Even if it's purely psychological — humans have shown to be quite irrational sometimes. Humanity is quite vulnerable to irrationality.
3. There are also other factors unrelated to halvings that may amplify the effect — such as that, purely by coincidence, there are talks about Bitcoin spot ETFs, which may probably positively affect the price (since demand for Bitcoin raises, and market participants are going to extract their surplus value from the increased demand)
Vika
npub179…rqced
2023-10-14 14:17:56
in reply to nevent1q…zkx7
Author Public Key
npub179hkmppz8m44dt0r7cg6f2jnn4shyew5fmu6uc9s9wle2s5s287qarqcedPublished at
2023-10-14 14:17:56Event JSON
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"content": "One of my theories:\n\n1. Halving primarily affects miners, who spend fiat for their electricity and receive BTC. (The first ever exchange of BTC for fiat was derived from the price of electricity used to mine it — or so I heard!) They start receiving less BTC and therefore are forced to sell it for more to compensate for their loss.\n\n2. Perhaps psychological forces such as \"hype\" also affect the price. Halving means less new bitcoins, therefore bitcoins become more scarce. More scarcity =\u003e higher price per unit. Even if it's purely psychological — humans have shown to be quite irrational sometimes. Humanity is quite vulnerable to irrationality.\n\n3. There are also other factors unrelated to halvings that may amplify the effect — such as that, purely by coincidence, there are talks about Bitcoin spot ETFs, which may probably positively affect the price (since demand for Bitcoin raises, and market participants are going to extract their surplus value from the increased demand)",
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