Bitcoin’s October Gains Fueled by Halving-Driven Supply Scarcity: AMBCrypto Reports Supply Shock Yet to Dissipate

Bitcoin’s October gains largely stem from halving-driven supply scarcity, according to a recent report by AMBCrypto. The cryptocurrency has been consolidating within a tight range, currently trading at $67,160 with a slight gain from the previous day. This consolidation is reminiscent of July’s pattern, where resistance at $68K led to a significant drop below $55K.

The post-halving supply squeeze has played a significant role in driving October’s gains, bringing fresh scarcity to the market. As Bitcoin wraps up its most bullish month, conditions may be ripe for a supply shock if demand aligns.

Historically, the post-halving period has been a catalyst for bullish rallies, as the decrease in block rewards impacts miners, leading to their capitulation. This shakeout leaves only the most efficient miners in the ecosystem, potentially creating a more robust environment for price appreciation as supply diminishes.

While the anticipated supply shock has not yet materialized, the effects of the halving are evident in Bitcoin’s mining difficulty reaching an all-time high. This has forced out less efficient miners, consolidating mining operations to only those with the best technology and lowest costs.

Institutional interest in Bitcoin is also growing, with exchanges seeing a significant increase in BTC reserves and BlackRock’s Bitcoin holdings exceeding 400K BTC. This surge in institutional demand further reinforces the potential for a supply shock in the market.

As Bitcoin continues to consolidate, maintaining a balance between demand and supply will be crucial in determining whether it can reach a new all-time high before the end of the quarter. Despite the possibility of a slight retracement, a full-fledged pullback seems unlikely given the current market dynamics.