"What the hell is this? But don't be afraid and always be careful."
The Bitcoin (BTC) halving event expected to occur in April 2024 will cause the price to skyrocket, but Grayscale suddenly believes that there are a number of external factors that may cause the halving event to not occur as in previous years.
Last month, the firm successfully turned Grayscale Bitcoin Trust (GBTC) into the world's largest BTC ETF, so the introduction of such an ETF could affect the price of BTC as if it were the second halving in a year.
Please note the BTC ETF has seen inflows of $2.6 billion since its launch last month and it should also be noted that the next halving event will reduce the BTC block reward from 6.25 BTC to 3.125 BTC.
Turning to Grayscale, his firm says that BTC halving events often push the price to new all-time highs the following year, however a reduced BTC supply inflation may trigger a different situation.
It seems that this period coincides with significant macroeconomic events, Grayscale commented, adding that the rise in digital assets in 2022 after the Covid-19 pandemic prompted the government to implement massive financial stimulus measures.
As the network's hash rate increases and block subsidies decrease, Grayscale reveals miners may find themselves in a tight spot in the near term.
However, BTC miners have benefited from Ordinals this year which has boosted BTC network activity, transaction fees and miner revenue independent of BTC's fixed block reward and halving schedule.
While higher fees may hurt BTC's use case for payments, Grayscale says Ordinals have inspired new innovations about BTC that help address scalability issues.
