The nearing Bitcoin halving 2024
event expected in 2024 marks a notable reduction in rewards for miners who successfully mine the cryptocurrency. As per insights from Grayscale, a crypto asset manager, this impending halving, when coupled with potential support from the approval of a spot Bitcoin ETF, could have unparalleled consequences. This is due to the prevailing distribution of Bitcoin supply, primarily held by entities inclined to retain their holdings for extended durations.
Grayscale's analysis highlights a crucial point: the existing distribution of Bitcoin ownership might significantly amplify the impact of large-scale events, such as evolving global policies, regulatory decisions (like the potential approval of a US spot Bitcoin ETF), and crucial developments within the crypto market, including the 2024 Bitcoin halving. Analyst Will Ogden Moore suggests that if these trends persist, the dynamics of Bitcoin's ownership could increasingly magnify the effects of pivotal events, consequently molding the trajectory of the cryptocurrency landscape.