Bitcoin Omega Candles Inevitable After Halving: Samson Mow ‘$1 Million BTC’ Advocate

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Samson Mow, CEO of Jan3 and a Bitcoin maximalist, talked to Forbes about the recently completed halving event. He anticipates a significant reduction in the supply of Bitcoin in the upcoming period, which he refers to as a “supply shock.” Furthermore, Mow expressed his belief that this event could potentially propel Bitcoin’s price to reach $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…

— JAN3 (@JAN3com) April 22, 2024

Bitcoin halving and “supply shock”

Samson Mow described to Forbes the concept of bitcoin halvings: The Bitcoin network has a limited supply of 21 million coins, which is released gradually through mining rewards. This was designed by Bitcoin’s enigmatic creator Satoshi Nakamoto, setting up halvings to occur approximately every four years and reducing the reward size by half. After miners produce 210,000 blocks, a halving event takes place.

To avoid an overwhelming supply of Bitcoin in the market due to continuous issuance, reductions in rewards (known as halvings) were necessary. Initially, miners received 50 Bitcoins for each newly mined block. Without these previous four halvings, all 21 million Bitcoins would have been extracted from the system by now.

Samson Mow explained to Forbes that the approval of spot Bitcoin ETFs by the SEC in January 2021, such as those from BlackRock, Fidelity, Ark Invest, and VanEck, generated significant new demand for Bitcoin. According to the Jan3 chief, the decrease in block rewards due to the halving and the increased demand from these ETFs could lead to a Bitcoin supply shortage.

“Omega candles inevitable”

Based on this experience, he believes that the Bitcoin Omega candles or perhaps multiple such candles may occur in the future. Prior to the halving event, the daily demand outpaced the supply by a factor of 5 to 10. Consequently, these significant price drops followed by sharp recoveries appear unavoidable.

According to Mo’s description, omega candles represent large candles on the trading chart. In simpler terms, they signify significant price fluctuations and volatility.

Many people view the Bitcoin halving as a significant milestone indicating that we’re entering a new stage in Bitcoin’s life cycle – the fifth one. The next halving is predicted to occur in four years.

In simple terms, Bitcoin’s halvings are positive events not just for Bitcoin itself, but for the entire crypto market. They demonstrate the effectiveness of the Bitcoin protocol. By reducing the reward given to miners, Bitcoin undergoes a supply squeeze, making it more valuable and similar to scarce assets like gold. Since the last halving, Bitcoin has experienced an approximately 8.5% price rise. Currently, Bitcoin is being traded at $66,200.

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2024-04-23 16:01