Grayscale has determined that after the halving, fundamental changes in supply and demand, among other factors, are likely to positively affect Bitcoin prices.
This conclusion is based on historical data, where past halvings have been followed by bullish rallies in the cryptocurrency market. However, it is important to note that past results do not guarantee future results, according to the asset management company’s specialists.
The well-known Stock-to-Flow model, which illustrates the connection between decreasing supply and rising prices, is not a reliable predictor of scarcity according to Grayscale.
In fact, the company points out that investors are not rushing to buy Bitcoin before halving, creating a situation where the price will not necessarily increase as expected.
Grayscale also suggests that Bitcoin rallies are not solely reliant on halvings, but are also influenced by major macroeconomic events.
