Grayscale Predicts Bitcoin to Enter Its Next Halving in a Strong Position

Spot Bitcoin ETFs have accumulated more than 192,000 Bitcoins since the launch on January 11. According to a research report published by Grayscale, these and similar significant developments are positioning Bitcoin stronger ahead of the upcoming halving event.

Grayscale’s Bitcoin Analysis: A Stronger Foundation

The leading asset management firm and Bitcoin ETF issuer, Grayscale, stated that Bitcoin’s technical fundamentals and use cases have significantly strengthened over the past year. Recent developments are moving the crypto market into a “stronger” position ahead of the halving, which historically leads to a rise in Bitcoin.

With the halving event, mining rewards will be cut in half, which will reduce the new supply of Bitcoin and, as a result, ease inflationary pressure. Looking at the historical process of Bitcoin halving, the halving event tends to trigger a new bull run in Bitcoin. According to asset management firm Grayscale, despite the challenges in miner revenues, updates in on-chain activities and market structure make this halving different from the previous ones.

Researcher Michael Zhao says, “Despite short-term challenges in miner revenue, fundamental on-chain activities and positive market structure updates make this halving fundamentally different. Although it has long been heralded as digital gold, recent developments show that Bitcoin is transforming into something even more significant.”

Spot Bitcoin ETFs Revitalize Demand and Activity

Spot Bitcoin ETFs, launched a month ago, have accumulated more than 192,000 Bitcoins in a short time, revitalizing activity on the Bitcoin blockchain. According to Grayscale, this development is creating significant demand that could support future price increases, even the Bitcoin bull run following the halving event.

After the halving, with the reduction of mining rewards, a lower selling pressure is expected in the market. According to the Grayscale report, this situation will require less buying pressure to support prices and lead to an increase in prices along with rising demand. Researchers indicate that the annual buying pressure required to maintain current prices will be halved with the reduction of rewards.

Source: Coindesk

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