Part 4/14:
Morehead explains how Bitcoin's supply reductions due to halving events influence its price. The first halving in 2012 dramatically increased prices, as the decrease in supply was substantial relative to total circulation. The second in 2016, with a smaller relative impact, still drove significant appreciation but to a lesser degree. Currently, with the third halving in 2020, the supply cut is approximately 2% of the existing stock, which, based on historical patterns, forecasts a more modest, though still substantial, price increase.
By analyzing these supply shocks—comparing previous halvings and their impacts—Morehead concluded that Bitcoin's price should increase roughly tenfold from current levels, aligning with his $115,000 summer target.