Bitcoin ‘Stronger’ Ahead of Halving: Grayscale

Bitcoin is expected to become “stronger” following its upcoming halving event, according to crypto asset management firm Grayscale. The halving event, which is part of the Bitcoin network’s code, will reduce the rewards for successfully mining a bitcoin block by half. This typically precedes a bull run in the cryptocurrency market. Grayscale highlighted the revitalization of on-chain activity and the introduction of new applications based on the Bitcoin blockchain, such as ordinal inscriptions and BRC-20 tokens, as factors contributing to Bitcoin’s increased strength. These developments have generated significant transaction fees for miners and attracted renewed interest from developers. Additionally, the demand for Bitcoin-based exchange-traded funds (ETFs) is expected to drive buying pressure, supporting higher prices. Grayscale’s research note suggests that Bitcoin’s fundamentals and use cases have significantly improved, making it even more significant than its previous reputation as “digital gold.”