21Shares Claims: This Bitcoin Halving Breaks the Mold

Crypto News- The recent green light for spot Bitcoin exchange-traded funds (ETFs) marks a monumental moment in the cryptocurrency’s evolution. Since their debut, Bitcoin has surged by an impressive 60%, accompanied by record-breaking trading volumes.

Institutional interest in Bitcoin ETFs has skyrocketed, attracting over $30 billion in just two months. Inflows have shattered records, surpassing $1 billion in a single day, while net flows exceed $10 billion, tripling the daily minted supply.

As we approach the halving, ETFs already hold a staggering 467,000 BTC, dwarfing Bitcoin’s annualized supply of 164,000 BTC.

21Shares Claims: This Bitcoin Halving Breaks the Mold

Analysts at 21Shares emphasize the potential impact of Registered Investment Advisors, overseeing $114 trillion in the US, who are mandated to wait 90 days post-launch before investing. Even a conservative 1% allocation to Bitcoin could trigger significant inflows, potentially doubling its market cap and tightening supply.

The steadfast confidence of long-term Bitcoin holders, who control roughly 70% of the circulating supply, further underlines the cryptocurrency’s enduring value proposition. Conversely, short-term holders have increased their holdings by over 33%, exacerbating supply constraints and hinting at an imminent price surge.

With the upcoming halving on April 25, 2024, against this backdrop, analysts foresee a unique and potentially unprecedented bullish cycle. The convergence of institutional interest, alongside the conviction of long-term and short-term holders, suggests a tightening of Bitcoin’s supply.

“If this trend persists,” analysts at 21Shares assert, “Bitcoin’s supply side will increasingly become illiquid, laying the groundwork for a supply squeeze and the potential onset of a parabolic bull run.”

While acknowledging Bitcoin’s volatility, the current landscape appears ripe for significant upward movement as the halving approaches. This cycle may deviate from past patterns, heralding a new era of institutional adoption and financial legitimacy for Bitcoin.